What are Digital Options ? And why trade them ?
Digital Options are a relatively “novelty” in the financial sector when compared to Forex Trading, as they only started appearing on internet in the mid-2008.
Since then, a plethora of companies entered the market and for some years they were considered the online fastest growing market as the concept kept spreading all over the globe at an unprecedented speed.
Despite the above, digital options are not yet well known to the investing public , but they have interesting advantages that we will see shortly.
With digital options you first look to speculate on a task on the following deadlines : until the end of the minute, the hour, the day, the week or the month. However, statistics show that 65% of binary options investors prefer to trade on 60 seconds.
If you think that the price of an asset at maturity will be greater than the current price (the strike price), you will acquire a CALL, conversely , if you think that the price of the asset at maturity will be less than the current price you will purchase a PUT.
With digital options you can speculate on everything: stocks, indices , currencies, commodities and obtain high returns even above 80% in just a matter of minutes. Well, don't expect to become a "new internet millionaire" just overnight, but by adopting a serious approach and careful money management it is possible to make a steady income overtime.
Trading binary options could be the future of financial speculation for ease of use, to accommodate new participants with low market capitalization and the very essence of "bet” (you bet on the rise or fall quickly of an activity without having to buy it).
Furthermore, a lot of FREE training is available through most companies that operate online and it is highly suggested that any new trader gets some training before they venture into live trading.
In this website you will find a list of the companies that are market leaders in this specialised field of financial trading.
Major features of trading Digital Options
- Fast-Paced - Expiry times for an option can be as little as 30 seconds. With the possibility to close a position early to secure the profit or limit the loss, it is possible to make hundreds of trades throughout a trading day.
- Simple – Just simple YES/NO investment decisions are all you need in the easy-to-use platforms, making binary options accessible to everyone.
- Profitable – Trading Binary Options can involve quick returns up to 85% within just minutes of making a trade, as the time frames now available on various brokerage platforms are offering the possibility to place trades with expiry within one minute and some even 30 seconds!
- Limited Risk – Unlike traditional Forex, there is no leverage involved and you are not at the mercy of wild fluctuations in price. This means you can only lose the amount you invested and no more. Also, the close early feature enables you to close a position prior to expiry and limit the loss, as well as securing the profit.
- Affordable – Due to the fact that when trading binary options you are only purchasing the option-to-buy an asset and not the asset itself; this makes trading in expensive assets like Gold – approx $1670 an oz or Apple Inc Stock at over $550 a share, affordable. Remember, you are not buying the underlying asset itself, just investing in the prediction about its price movement.
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