Digital option

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Digital options pay out either a fixed amount, or nothing, depending on the market prices of the underlying asset.

There are two main types:

  • 'All or nothing' options, referenced to the underlying asset price at expiry only (also known as 'binary' options);
  • 'One touch' options, which will pay out if the underlying asset price reaches a pre-determined point at any time during the life of the option.


See also