Digital Options - Trading made easy

Trading on foreign exchange market is not an easy thing, requiring special skills and a wide variety of knowledge. The development of online forex brokers made forex trading more accessible but unfortunately the two requirements, skills and knowledge, could not be surpassed. Luckily a new form of forex trading emerged making trading easier than ever. The new and facile method of trading forex consists in digital options.

In digital options, also known as two way options, you have two types of options to choose from: put or call. For each currency, stock or commodity there are only two directions in which its price can go: up or down. If the price will go up it’s a call option while if the price will go down it’s a put option.

As you can see the forex trading is reduced to minimum, the trader needing only to predict if at a certain point in the future the price of an asset will be higher or lower.

The two way options are very easy to trade but you still need to choose the parameters of the option, whether is a put or a call option.

Digital options trading steps

1. Choose the asset: most two way options brokers have a wide offer that includes currency pairs, commodities, stocks and even indices. At this point you need to decide on which asset do you want to trade options.

2. Put or call: you also need to decide upon the option type. If you think that the exchange rate or the price will be lower choose a put option and if you think that the rate will be higher choose a call option.

3. Select the expiry time: you choose the exact moment in which the rates will be compared. The expiry time ranges from one hour to one month or more.

4. Set the amount: you are free to decide how much to invest in the digital option. There is usually a minimum and a maximum amount required but you can choose any amount between the two levels. Once you entered the amount you will see the return of investment for both situations, a successful option or a losing option.

5. Buy the option: you are only one click away from forex digital options trading. Click on “Buy” button to trade the option you want.

Two Way Options advantages

Although the digital options are recently developed, they already gained huge popularity thanks to their exceptional advantages.

The main digital options advantages are:

- Predictability: before buying the option you already know the payout whether your trade will be successful or not.

- Accessibility: the low bankroll requirements for digital options and the numerous digital options brokers available make this form of trading very accessible to any trader, amateur or professional.

- Easiness: the digital options are very simple and easier to trade than the classic forex trading method. Everything is clear and predictable so you can’t make any mistakes.

- Profitability: the return on investment (ROI) for digital options is incomparably higher than the ROI for classic trading. With digital options you can have up to 85% profit rate in less than one hour which is extremely high for forex trading industry.

Conclusions about digital options

The newly developed digital options gain so much popularity in a short time thanks to their remarkable advantages. The very high profitability (up to 85%) and the simple trading process are the strongest points in the favor of the two way options.

The predictability is another aspect that makes digital options appealing compared to the classic forex trading. In digital options trading you know from the start exactly how much money you will collect at the deadline for the option regardless the final outcome.

The number of both digital options traders and digital options brokers is increasing so the market already reached a certain level of maturity. The competition on the market is already strong the brokers competing against each other for the best profitability rates and minimum transactions.

On the other hand practically anyone can trade digital options so the number of potential traders is unlimited. However is expected that the number of amateur traders to be always higher than the number of experienced forex traders.

Due to the easy steps and the clarity of the trading process, the digital options represent the best choice for a first trading experience. The forex trading has never been easier than now so it’s safe to say that the digital options represent the future of forex trading.

Author: Mihaela Florea