Digital Option, also known as ABOVE / BELOW option or HIGH / LOW option, is one of the most popular type of binary options available today.
When trading digital option, you have to determine whether the price of an asset will move above or below (higher or lower) a predetermined price by the time of expiration. For example, if a trader is trading on gold, they must determine if the price of gold will increase or decrease when the option expires.
From the onset, the trader knows how much money they can win or lose. This makes it easy for traders to manage their risk and calculate their gains thoroughly before ever putting a penny on an option.
How to Trade Digital Options?
1. Choosing Digital Option
- Login to Binatrades.
- Navigate to Traderoom.
- Choose "DIGITAL".
2. Choosing an Asset and Expiry
- Choose an asset that you want to invest.
- Click the drop down menu and choose an expiry time.
- (Optionally) you can filter the asset list by choosing the type of asset under "Category".
3. Choosing an Action
- Predict the price will be higher(Call) or lower(Put) than the Strike Price(Our Rate) when the option expires.
4. Purchase your Option
- Enter the amount you wish to invest.
- Click "Buy".
5. Trade confirmation
- Wait for trade confirmation to show up.
- Click "Ok".
6. Open Trades
- Check to see your active order in "Open Trades"
- (Optionally) Often time, you will see the "Show" button available to your open trades. Please refer to Advanced Features for more information.