What are digital options on the Deriv Binary Options Platform?
What are digital options – Digital options available on Deriv
Rise/Fall
Predict whether the market price will rise or fall by the end of the contract.
If you select ‘Rise,’ you receive the payout if the exit price exceeds the entry price.
If you select ‘Fall,’ you receive the payout if the exit price is lower than the entry price.
With the ‘Allow equals’ option (available on selected instruments):
Select ‘Rise’ to receive the payout if the exit price is higher than or equal to the entry price.
Select ‘Fall’ to receive the payout if the exit price is lower than or equal to the entry price.
If the selected condition is not met, your stake is lost.
Higher/Lower
Predict whether the market price will be higher or lower than a price target (the barrier) at the end of the contract.
If you select ‘Higher,’ you receive the payout if the exit price exceeds the barrier.
If you select ‘Lower,’ you receive the payout if the exit price is below the barrier.
Your stake is lost if the selected condition is unmet or the exit price equals the barrier.
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What are digital options- Browse our FAQ
What are digital options – Where can I trade Up/Down options?
Up/down options can be traded on the Deriv Trader, SmartTrader, and Deriv Bot trading platforms. They are available for forex, stock indices, commodities, and derived indices.
What are digital options – How can I open an Up/Down contract?
To open an Up/Down contract, you’ll need to:
– Select your preferred market and trading asset.
– Choose the Up/Down option type you want to trade (Rise/Fall; Rise Equals/Falls Equals; Higher/Lower).
– Set other optional contract parameters.
– Choose the contract duration.
– Enter your stake or preferred potential payout amount.
– Open your contract.
What are digital options – What are Up/Down options?
Up/Down options are divided into two types:
Rise/Fall contracts, where you make a market prediction on whether your contract’s exit price has risen or fallen by the end of the contract period. If you trade with the Allows Equals requirement, you predict that the contract’s exit price can also equal the entry price.
Higher/Lower contracts, where you set a barrier before opening your contract and make a market prediction on whether the underlying asset’s price is higher or lower than the predetermined barrier at the end of the contract period.
Can I close an open position before expiry?
Yes, you can close an open Ups/Downs position before expiration, regardless of trade duration.
However, the availability of early exit may vary depending on the specific trade type. Some trade types may have restrictions or only be available within a particular timeframe.
What are digital options? Can I select the duration or expiration time for the rise/fall and higher/lower trades?
Both trade types allow you to choose the trade duration or expiry time. You’ll need to select the timeframe for the asset’s price to move in your predicted direction.
For Rise/Fall, contract durations range from 1 tick to 365 days.
For Higher/Lower, contract durations range from 5 ticks to 365 days.
Can I enter multiple Up/Down contracts at the same time?
Yes, you can enter multiple contracts at the same time. Opening various contracts simultaneously allows you to diversify your trading portfolio and take advantage of different market opportunities.
So that you know, the specific rules and limitations on the number of contracts you can enter simultaneously may vary depending on the trade type. Some may restrict the number of contracts you can open, while others may have other specific conditions that allow greater flexibility.
How can I know my potential payout for a Rise/Fall or Higher/Lower trade?
The potential payout is predetermined based on the specific details of the trade and if your market predictions are correct.
Potential payouts for Rise/Fall contracts generally range from 85% to 95% of your stake.
Potential payouts for Higher/Lower contracts can range from 1% to 3,900% of your stake, depending on where the barrier is set.
The potential payout and potential loss (your initial stake) will be displayed before you enter the trade.
What are digital options – What is the difference between Rise/Fall and Higher/Lower contracts?
A Higher/Lower contract is typically a Rise/Fall contract with an adjustable barrier that can be applied before purchasing the contract. For example, in a “Higher” contract, the further away the barrier is from the current market price, the higher the potential payout, and vice versa for a Lower contract.
Are Higher/Lower contracts the same as High/Low Ticks?
No, they are not the same.
When you trade a Higher/Lower contract, you speculate on an underlying asset’s price direction over time.
When you trade High/Low Ticks, you predict which tick is the highest within a 5-tick contract.
How do I predict the Rise/Fall or Higher/Lower trade price movement?
Traders typically analyze the underlying market and price trends to determine the likelihood of prices rising or falling over time.
To identify trends, you can consider several factors, including:
– Recent price swings and market volatility
– Economic news and events- Trends are revealed using technical indicators.
What are digital options – Why trade options on Deriv
Flexible payout options
If your predictions are correct, you can know your potential profit with fixed payouts or maximize it with variable payouts.
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What are digital options