Digital options 2020 - explained clearly and immediately tradable

Digital options 2020: what is it actually? All information compact to read now Get information & trade digital options via a demo account.

In principle, there is no independent digital option definition, since the terms digital options and binary options are interchangeable and refer to the same financial instrument originating in the USA.

The so-called fixed return options (FROs) were initially traded on the American Stock Exchange (AMEX). In the meantime, the market for digital options has increasingly shifted to over-the-counter trading on online platforms for binary options. A large number of brokers offer the trade in digital options and advertise for the favor of the customers.

The characteristics of digital options at a glance:

  • Synonyms Use of Digital options and binary options
  • Use of terms includes: Digital property works with two states
  • More common is the term binary options
  • Traders set a falling or rising price value
  • High return achievable with low risk of loss

Further binary options definitions

In addition, there are also the terms "all-or-nothing", "cash-or-nothing" -, or "Exotic" options. In our opinion, for a meaningful binary options definition, the terms "digital" or "binary" options are the most appropriate, because just like with the digital or binary states "1" and "0", only 2 scenarios can occur.

If the event expected by the buyer of the option occurs, he receives a previously defined profit. If the dealer is wrong, the option expires worthless and the stake is lost. However, many brokers grant a repayment of up to 15% in the event of loss in order to cushion the risk somewhat. The conditions of the individual brokers are clearly shown in our broker comparison.

If the trader relies on rising prices, he buys a call option with the desired term. A put option is purchased to speculate on falling prices. The graphic shows the simple functioning of classic trading schematically.

The introduction to trading in binary options .

Digital options 2020 - explained clearly and immediately tradable

For what type of investors are digital options interesting?

Trading in digital options is interesting for beginners and professionals, as very high returns can be achieved within a very short time. Of course, with above-average returns there is also an increased risk. However, speculative investors will be aware of this. In addition, the risk when trading binary options is always limited to the use, which can largely be determined by the trader up to the broker-dependent minimum trading amounts. Trading is therefore possible for beginners with just a few euros. With appropriate trading experience, there are hardly any limits to the top. However, one should always be aware that the total loss of the stake is possible and accordingly choose its position size responsibly.

Speculatively oriented investors who focus on straightforward trading on rising and falling prices with clearly defined Prefer risk, binary options should take a closer look.

Never be in loss - Digital Option

The price movements

are decisive for digital options as Underlyings stocks, commodities, currency pairs and indices in question. The range of digital options varies depending on the broker. If you want to start trading binary options right from the start, you should turn to a broker with a large binary options portfolio. When binary options began in over-the-counter trading, online brokers now offer simplified forms of trading binary options on their platforms. These are exchange-traded and standardized in the form of short-term options.

Along with the standardization, the binary options have fixed payout or loss amounts when they are concluded. This makes binary options particularly interesting for newcomers to trading. It is not uncommon for later Forex or CFD traders to get started with binary options trading. Facts and experience are also outstanding when trading binary options. In order to soon become one of the big names in the trading business, it is worthwhile to get to know the current binary options eBooks.

exercised on the following underlyings:

  • equities
  • indices
  • commodities
  • currency pairs

Despite the Simple trading options, especially in binary options, should be carefully targeted for fair trading. When first choosing or switching to a new broker, an existing regulation should be an important decision criterion.

As with trading forex products, CFDs or certificates, it is important to gain experience when trading binary options and to learn trading step by step. Answering the question "What are binary options?" Also helps here.

It has a positive effect on the first step in trading in digital options if you deal with the issue before or during trading with digital options. In addition, every trading decision should be accompanied by a corresponding risk awareness.

Digital options 2020 - explained clearly and immediately tradable

These advantages bring digital options with them

Digital options traders trade with call- and put options. Put options are used when betting on falling prices. On the other hand, the choice of call options falls when prices are rising. What is special about the digital options is that the trader can only lose the stake that he has given in the respective option. This means that the digital options are among the trading products that generate calculable risk.

In addition, on average, they deliver high returns compared to other trading products. Depending on the online broker, the returns can be between 85- 100% vary. Above all, aggressive traders, who want to achieve a return in a particularly short time, consciously opt for the digital options for these reasons.

Binary options trading types are available to traders, among others The following options are available:

  • One-touch trading
  • Extra returns with high-yield functions
  • Range trading
  • Early-Closure and Roll-Over
  • Risk management with 15% repayment in case of loss

Due to the liveliness of the markets and the multitude of national and international traders, the existing trading types always come again add new types of trading and always make trading with digital options interesting and lucrative.

This trading product is characterized by low risk and high returns. Several thousand EUR can be generated in seconds. As with other trading products, experience and targeted further training in the field of digital options also help here. Traders who are gaining their first experience with digital options and would rather lose little than too much should opt for a digital options broker with risk management.

Use demo account to gain experience

Serious brokers offer a demo account for their trading account. Depending on the broker, this is limited to a period of use and its scope. The demo account can be used to gain valuable trading experience with digital options. The demo money has been used up and the demo account is still activated, the recharge to the starting amount can usually be requested. The customer support of the online broker will help here.

While using the demo account, further questions about binary options or digital options will arise. When answering the question of whether there is a difference between binary options and classic options, the further article "Difference between binary options and traditional options" is useful. Further questions and above all specific trading questions can also be asked at the support of the respective online broker.

It turns out that training and information gathering when trading with binary options pay off. With the help of the demo account, beginner mistakes in the form of demo money losses can be intercepted and avoided when using the real trading account later.

Digital options 2020 - explained clearly and immediately tradable

Conclusion: Binary options are the gateway to the professional Trading with trading products

Digital options can be used synonymously with the more familiar term of binary options. Trading in binary options is significantly influenced by leverage effects. Even if the profit and loss risks seem clear, high losses can occur under certain circumstances. To ensure that binary options trading remains fair, a trader with regulated binary options should be used when choosing the broker.

Binary options trades are increasingly being offered as an extension of online casinos. If you want to trade binary options safely and in a concentrated manner, you should choose financial brokers.

Digital options 2020 - explained clearly and immediately tradable

Share this article