Start trading in Digital 100 Options

This is a short step-by-step guide that can come in handy if you want to get started trading in Digital 100 options.

1.) Sign up with a vendor

sign upThere are a lot of different vendors of digital 100 options to chose among online. Many of them will call themselves options brokers rather than options vendors.

When you select a vendor, do it carefully. Don’t let fancy promises about big first deposit bonuses lure you into selected a vendor that will not be good for you in the long run. For more advice about this, take a look at our article “Choosing a broker of Digital 100 options” on this site.

2.) Make a deposit

depositIn our guide about choosing a vendor, we recommend that you try out the trading platform using a demo account where you trade with play money only. That way, you don’t lose any real money as you learn how the platform works. You can also use the demo account to try out various trading strategies for digital 100 options.

Once you feel comfortable with the trading platform, it is time to make a deposit into your account with the vendor, and start trading using real money.

3) Chose underlying category and exact underlying

tradeOn many trading platforms for digital 100 options, your first step when buying an option is to select which type of underlying you want, e.g. stock prices, stock index, commodity price, foreign exchange rates, etc. Once you have selected a category, you can see the available underlyings for that category and make your decision.

There are also trading platforms that work differently, e.g. where you choose the lifespan category first or where you choose the option type first (Hi/Low, Touch/No Touch, etc).

4) Adjust other parameters

Once you have narrowed down you selection with one parameter (e.g. underlying) you can adjust the other parameters within the available ranges. What you decide will impact how much you get paid if the option expires in the money.

Here are a few examples of selections that you need to make:

  • Option typeHigh/Low, Touch/No Touch, In/Out, etc
  • Life span (also known as option term or expiry time)This is where you decide the lifespan of your option, e.g. select an option that will expire 30 seconds after you buy it or pick an option that wont expire until the end of the trading day. ‘
  • How much money you want to invest in the optionThis is often referred to as “trade size”

Step 5 – Confirm your purchase

Double check that all parameters have been selected correctly and then confirm your purchase.

Now it’s time to wait and see how your investment will pan out. Since this is a Digital 100 option, you already know exactly how much you will get paid if it expires in the money.