These days, everything has a digital presence. Where ever there are electronics, you get digital and everything from music to movies to books has a digital form. But what are digital options? The basis of the digital world we live in is the concept of binary numbers. Everything is reduced to a one or a zero. It is either on or off, right or wrong. Digital options is basically a corruption of the term Binary Options which came about with online trading and the ability of traders to place trades based on predictions. Their predictions were either right or wrong. So the terms “Binary Option” and “Digital Option” refer to one and the same thing and are interchangeable.
Binary Options are the creation of our digital world and are only available on line, through online brokerages. Everything surrounding and to do with binary options exists only online. This gives another unique element to binary options. Because they exist online, there is no central exchange like the stock exchanges of old and because of this, they are available around the clock. They are influenced by the physical stock exchanges and when these exchanges close, the stocks may slow down, but there is no time when they are not available to trade and around the world there is always a market open somewhere in the world.
Digital Options – Choosing the Right Platform
Platforms in the digital space are readily available, but you have to be certain that they are secure to use and that they have solid reputations. The same safe guards apply to online trading platforms that apply to banking and shopping platforms. This means that you must do your online “due diligence” on any online service that you intend using and this applies to trading platforms more than to any other entity because of the personal and financial information you will be entrusting to the administrators.
So when you research the trading platform you are thinking of using, make sure they have a reputation for security and that the trading experience is easy to understand and use. The operation should be smooth and seamless so that you know exactly what you are doing at each move so that you can concentrate on your trades and not on trying to operate the platform.
24Option uses all the latest tools available to it online combined with the latest technology. This lets them offer you all the latest information by the use of news feeds and continually updated stats and market figures. With this service you will be able to trade at your personal best by making informed decisions and by being able to place trades and close trades with the most accurate timing. Your peace of mind will also be optimum because you will be assured that the site and your transactions will be protected by the best online security available.
Trading Digital Options – Are there special techniques?
Apart from being able to find your way around a computer and onto the internet, there are no special skills that you need to trade. You will however be well advised to know as much as you can about the world markets and what is happening in related areas such as politics, international relations and the worlds larger economies. All these things factor in to the instruments you are trading and will help you make the best calls when planning a trade.
To promote the marketing knowledge of its clients, 24Option has commissioned a world leading education centre. Through this facility you have access to cutting edge trading tools and up to date knowledge about the markets and what is driving them at any given moment – everything you need to develop into a top flight trader.
Part of the education centre service is the facilitation of webinars and an online library. From this you can learn the latest techniques and strategies and have access to 24Option’s eBook on trading. There is a stunning amount of information is whatever format suits you, including a video library.
Properly handled, trading digital options is a great way to make money. It is increasing in popularity all the time because it is so easy to start trading and you don’t need any previous knowledge or skill. Once you have grasped the basics, there are hundreds of strategies and techniques available. It is highly unlikely that you will not be able to find a trading method to suit your temperament and personality.
Here are some of the better known techniques:
This strategy works to minimise risk. Let’s say you have a trade on gold that is not going your way. You predicted that the price of gold would decrease and you placed a one hour Call on the metal. About ten minutes before the trade is about to close, you see that in fact the price is increasing and you will close out of the money. To cut your losses, you can place a Close Now which will allow you to minimise your loss on the first trade that is going to the wrong way.
Close Now can also be deployed when you see that your prediction was correct, but as the cut off time approaches, you are not certain that it will close in the money. You can close early and minimise your risk.
This is simply extending an option if you see that your prediction might not bear fruit in the allotted time. Let’s go back to the one hour Call we put on gold. At fifty minutes you realise that the price has not behaved as you thought it would. For a fee, you can extend your trade if you think that in spite of its slow performance, your prediction is still good and you want to give the trade a chance to end in profit.