What are digital options?

Option is a derivative financial instrument based on any underlying asset, such as a stock, a currency pair, oil, etc. Digital option - a non-standard option that is used to make a profit on price movements of such assets for a certain period of time. A digital option, depending on the terms agreed upon by the parties to the transaction, at a time determined by the parties, brings a fixed income (the difference between the trade income and the price of the asset) or loss (in the amount of the value of the asset). Since the digital option is purchased in advance at a fixed price, the size of the profit, as well as the size of the potential loss, are known even before the trade. Another feature of these deals is the time limit. Any option has its own term (expiration time or conclusion time). Regardless of the degree of change in the price of the underlying asset (how much it has become higher or lower), in case of winning an option, a fixed payment is always made. Therefore, your risks are limited only by the amount for which the option is acquired.

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