- June 21, 2017
- Posted by: Michael
- Category: Binary brokers
Digitals options are a new feature that IQ Option just recently added to the platform. Digitals options are very similar to binary options, but they offer up to 900% payouts. If you want to discover how to trade digital options, follow our in-depth tutorial.
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- Website: https://iqoption.com/en/
Risk Warning: Your capital might be at risk as all types of trading carries certain risks.
How digital options work and how they differ from binaries
With digital options, you still have to decide whether the price will go up or down. What is different, however, is that you also choose your strike price. That means that you have in your own hands the profit which you can make from an option. If you, for example, choose high strike price and you will go for a call option you can earn up to 900% from your investment. If you decide to choose a strike price only a little bit higher than the current price of the asset is, you will earn for example 100%. But bare in mind that the further away the strike price is from the current price of an asset the more riskier your trade gets. That is also the reason why you are being rewarded with higher payouts in case of a correct prediction. Digital options are also obtained with the „buy out“ tool which allows you to sell your options prematurely.
Where to find strike price
Strike prices can be found on the right parallel line. Once you select your strike price you will instantly see how much you can get from a successful trade. As the price of the asset changes so do the payouts. Once you evaluate risks and profits of your trade you can open a position.
How to create a digital option trade in 5 easy to do steps
- 1. Select digital options in the main table where you can now also choose from Binary, Forex, CFD (Crypto)
- 2. Click on an asset you want to trade
- 3. Choose your strike price
- 4. Open either a Call option or a Put option
- 5. Confirm the trade
Your capital might be at risk