Digital options are among the most popular type of binary options that are available today.
To put it simply, digital option is an option whose payout is fixed if the stock exceeds the limit that was set prior to this by the time of expiration. The trader must determine if the price of a certain asset will increase or decrease before the time of expiration.
The way that digital options work is as follows. The trader will carry out some basic analysis of the asset that they wish to place money on. Let’s use gold as an example. They will decide whether they believe that the price of gold will increase or decrease in a given time frame. If they believe that the price will increase, they will purchase a Call option, and if they think that the price will decrease, they will purchase a Put option.
The advantage with digital options is that the trader knows exactly how much money they can win and lose, making it far easier than other options to manage risks, and calculate potential gains. It is an excellent platform for investors and traders to begin in, if they are new to this field.
Close Now is a platform that allows the traders to buy an option before the time of expiration. This is often used when your option is not performing as you predicted. This is an effective way of minimising your risk and increasing your chances of making money on a certain asset. Let’s use gold as an example again. Say you have bought a Call option on gold that lasts for one hour, and you notice towards the end that the price of gold is steadily increasing. If you bought the Call option before the time of expiration, you would ensure that you made a profit. This could work the other way as well, so if you noticed that the price was decreasing, you could buy out the option before the time expired, as a way of minimising your risk.
You can see with Close Now, just how great digital options are at helping you to budget and manage your money, not to mention minimise the risk of losing money.
The extend feature is completely unique to Option888, and allows traders to extend the expiration date of an option. This gives you a greater chance that your option will be in-the-money at the expiration time. Again, using gold as an example, say you have a Put option on gold minutes before the time of expiration. If the price has not decreased like you had anticipated that it would, you can extend the expiration time for a one-time fee. This gives it a greater chance of doing what you predicted, therefore landing you in the money.