Binary and digital options are prohibited in EEA.
Please be advised that certain products and/or multiplier levels may not be available for traders from EEA countries due to legal restrictions.

Top 5 digital options beginner tips

Your capital may be at risk. This material is not investment advice.

South African traders have been trading with online digital options for many years.

What is binary option?

digital options are online investments that give you fixed returns in a time period that is predetermined. The two possibilities to trading with digital options mostly used are the fall and rise of assets, also known as the ‘cal/put’ option, or the ‘high and low’ option. There are both long term and short term digital trading options too. Below are all the options given to traders by digital options brokers.

  • 60 seconds trading
  • High or low trading
  • One touch trading
  • Trading in pairs
  • Trading in ladder options

digital options are a preference for most South African traders because of their simplicity. All they have to worry about when trading with digital options is the price movement direction of their asset and the expiry period of the trading session.

Every new venture needs to be understood well before being executed. As a beginner, you will need to learn everything there is to learn about digital options before you start trading.

Below are suggestions for South African traders.

1. Look for a trusted and a reliable broker
There are a large number of digital options brokers on the internet. Knowing which South African broker will give and get you the best deals might be hard. Before looking for a broker, make sure you get all the information about digital trading and what it entails.

Look for people who have traded for longer periods and ask them to get for you a reliable broker who will offer you a wide selection of digital trading options and a trading platform that is secure.

Also, be sure to check that your selected broker is regulated by the right government regulatory bodies, like the Financial Services Board (FSB) of South Africa. This will eliminate scam brokers from conning you out of your investment.

2. Use an auto trading software
For those South African traders who don’t have so much time to learn everything there is to know about digital options, there is software that can help them out. This is the digital options robot. The digital options robot is a fully automated trading software for digital options trading that enables a trader to select different risk level settings and connects the trader with a list of good brokers. The software takes a very short time to install.

3. Select good trading services and assets

Look for a South African broker who can offer you several trading options. Options like the demo account IQ option, StockPair, AnyOption, and a flexible mobile app. There are still a variety of more trading options a broker can give you. Of the above, the most widely used one is the IQ demo account.

Why use an IQ demo account?

  • It is risk-free. Your initial capital will be safe.
  • It is fully automated.
  • You can easily switch between accounts.
  • It takes a very short time to open and install.
  • It is reliable and can be replenished.

4. Make an early exit
If the value of the asset you are trading in does not go the way you expect, there is the option of making an early exit. The value of an asset can go down due to fluctuations in the market. Making an early exit will save your trading.

These are some other exit options when your digital options trading contract expires:

  • An ‘options builder’ tool that will allow you to choose your own expiry period.
  • A ‘rollover’ tool that will let you stay in the trade if it is going well for you. This will give you a chance to win more profit.
  • The ‘early closure’ tool that gives you the chance to exit as soon as you see you are losing. This lets you end a bad trade and cut your losses, or take whatever profit you have made and exit before the trading turns against you and you start losing.

5. Read widely
Do not risk your investment capital by jumping right into South Africa trading before understanding what digital options are and if it is something you want to do. You can achieve this by reading everything about digital options in all the education materials you can get. Also, check all the sites that write and talk about digital options trading. Watch as many video demonstrations as possible. Use charts, indicators and anything that will give a clear picture of how digital options are behaving or trading in the South African trading market.

This will prepare you for what to expect, and it will sharpen your trading skills giving you all the technical and fundamental analysis you need to know.

What are the benefits of trading in digital options?
digital options have very many advantages over several other trading options.

These are:

1. digital traders have total control over any of the trading risks they may come across than any other trading options.
2. Traders can never lose more than their initial investment.
3. Traders have the benefit of knowing earlier or beforehand of what to expect. This makes it very simple to calculate the risk ratio.
4. The turnaround time for digital options trading is very fast. This means traders in digital option benefit faster from their investments than any other trading option.
5. The returns can be high, usually ranging from 65% to 90%. This is very high compared to returns from other trading options.
6. digital options trading is very simple to use.
7. There is a choice of instruments to trade in. These are Commodities, Market indices, Currency pairs and Stocks.

Conclusion

If you are in South Africa and looking for financial freedom, something that will give you speedy returns to your investment in the quickest time possible, then start trading in digital options today. It is simple, rewarding, challenging and profitable, and, what is more, you can do it from the comfort of your home.

Please be advised that certain products and/or multiplier levels may not be available for traders from EEA countries due to legal restrictions