Quotex Trading Made Easy: A Guide for Beginners

The best way to trade digital options?

A derivative financial product called an option is one that is based on any underlying asset, such as a stock, a pair of currencies, oil, etc.

A digital Option is a non-standard option that is utilized to profit from changes in these assets’ prices over a specific time period.

A digital option results in a fixed income (the difference between the trade income and the price of the asset) or loss (in the amount of the asset’s value), depending on the terms agreed upon by the parties to the transaction, at a time chosen by the parties.

The size of the potential profit and loss are known even before the trade because the digital option is bought in advance at a predetermined price.

The time restriction is another aspect of these transactions. Every option has a certain term, such as an end date or expiration date.

A fixed payment is always made in the event of an option win, regardless of how much the price of the underlying asset has changed (whether it has gone up or down). Your risks are therefore only as great as the price at which the option is purchased.

What types of digital options are there?

  
When trading options, you must decide which asset will serve as the underlying security. On this asset, your forecast will be implemented.

Simply put, when you purchase a digital contract, you are making a wager on the direction of the price of the underlying asset.

An "item" whose price is considered when a trade is completed is referred to as an underlying asset. Typically, the most sought-after products on the market serve as the underlying asset of digital options. They come in four varieties:

• securities (shares of world companies)
• currency pairs (EUR / USD, GBP / USD, etc.)
• raw materials and precious metals (oil, gold, etc.)
• indices (SP 500, Dow, the dollar index, etc.)

The concept of a universal underlying asset does not exist. You may only choose it based on your own knowledge, intuition, and a variety of analytical data, including market analysis for a certain financial instrument.

How to Trade Digital Options?

1. Trading assets include currencies, commodities, cryptocurrencies, and indices.

• The list of resources is scrollable. The resources that are at your disposal are highlighted in white. To trade on an asset, click on it.
• Multiple assets can be traded at once. To the left of the asset area, click the "+" button. The asset you select will accrue value.

The profitability of the asset is indicated by the percentage next to it. The greater the proportion, the greater your potential profit.

Example: If a $10 transaction with an 80% profitability closes successfully, your account will be credited with $18. You invest $10, and you make a profit of $8.

Depending on the market conditions throughout the day and the time a trade expires, the profitability of some assets may change.

Every trade closes profitable, just as it did when it was opened.

2. Select a Time for Expiration

The trade will be deemed finished (closed) during the expiration period, and the outcome will then be automatically added up.

When concluding a trade with digital options, you independently determine the time of execution of the transaction (1 minute, 2 hours, month, etc.).

3. Decide on the amount you’ll invest. The minimum and maximum trading amounts are $1 and $1,000, respectively, or their equivalents in the currency of your account. We advise you to begin with modest trades in order to gauge the market and gain comfort.

4. Make your forecast after analyzing the price movement on the chart. Depending on your forecast, select the Up (Green) or Down (Red) alternatives. Press "Up" if you anticipate a price increase, and "Down" if you anticipate a price decrease.

5. To determine whether your prediction was accurate, wait until the trade has closed. If it were, your balance would increase by the amount of your investment plus the asset’s earnings. If your prediction was off, you wouldn’t get your money back.

Under The Trades, you may keep track of the progress of your order.

Frequently Asked Questions (FAQ)

What are the potential outcomes of the trades placed?

In the market for digital options, there are three possible outcomes:

1) You will be compensated if your prediction of the movement of the underlying asset’s price is accurate.

2) If your forecast was incorrect by the time the option expired, the loss you incur is capped at the asset’s value; in other words, you can only lose your initial investment.

3) You receive your money back if the outcome of the trade is zero (the value of the underlying asset has not changed; the option expires at the price at which it was purchased).As a result, the size of the asset value will always be the single factor limiting your risk exposure.

How do I determine a trade’s profit?

You are not required to figure out the profit on your own.

A feature of digital options is a fixed amount of profit per transaction, which is calculated as a percentage of the value of the option and does not depend on the degree of change in this value. Suppose if the price changes in the direction predicted by you by only 1 position, you will earn 90% of the value of the option. You will earn the same amount if the price changes to 100 positions in the same direction.

You must carry out the following actions in order to ascertain the profit amount:

• Pick the thing that will underpin your proposal.
• Specify the amount at which you would have bought the option.
• Choose the trading time, and if your prediction is correct, the site will then automatically display the precise percentage of your profit.

Up to 98% of the investment can be made as a profit from the trade.

A digital option’s yield is predetermined at the time of purchase, so there’s no need to wait for unpleasant shocks like a lower percentage at the end of the trade.

Your account will instantly be credited with the profit as soon as the deal is closed.

What is the basic idea behind trading digital options?

The simplest kind of derivative financial instrument is, in reality, a digital option. You don’t need to forecast the potential value of an asset’s market price to succeed in the digital options market.

The fundamental idea behind trading may be distilled down to the accomplishment of a single task: determining whether an asset’s price will rise or fall by the time the contract is executed.

The benefit of these options is that from the time the trade is closed until the next, it makes no difference to you whether the price of the underlying asset increases by 100 points or only one. It is crucial for you to simply predict the evolution of this price in one way.

If your prediction is accurate, you will still receive a fixed income.

Conclusion: Trading is made simple with Quotex

Trading provides users with a wealth of advantages and an opportunity to make significant earnings. However, you won’t be able to reap the rewards of trading until you make a sensible choice in your broker. If you wish to open an account with a binary options broker for the first time, Quotex is the best alternative.