What are Digital options?

Digital options, also known as binary options, are a type of financial instrument that allow traders to speculate on the direction of an asset. They have both a predetermined risk and reward, so traders know how much they could potentially win or lose with each trade. With Digital options, you get to choose between two outcomes; you either win a certain predetermined amount if your prediction is correct, or you lose the whole amount invested when your prediction is incorrect. This all-or-nothing structure makes it easier for traders to understand their risk/reward scenario and decide if investing in a digital option is right for them.