{"id":1245,"date":"2024-05-09T04:28:14","date_gmt":"2024-05-09T04:28:14","guid":{"rendered":"https:\/\/quotex.dev\/?page_id=1245"},"modified":"2024-05-19T18:21:43","modified_gmt":"2024-05-19T18:21:43","slug":"faq","status":"publish","type":"page","link":"https:\/\/quotex.dev\/en\/faq\/","title":{"rendered":"FAQ"},"content":{"rendered":"
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<\/path><\/svg><\/span>What is digital option?<\/span><\/path><\/svg><\/span><\/path><\/svg><\/span><\/div>

Options \u2013 derivative financial instruments based on underlying assets (stocks, currency pairs, oil, and so on).<\/p>

DIGITAL OPTIONS \u2013 non-standard options used to generate profits from price movements of an asset for a certain period of time.<\/p>

Digital options, depending on the terms agreed to by the parties to the transaction, provide a fixed profit (the difference between trading income and asset price) or cause a loss (of asset value) at a time determined by the parties.<\/p>

Because digital options are purchased in advance at a fixed price, the magnitude of profits and possible losses are known even before trading.<\/p>

Another feature of this offer is the time limit. All options have their own timeframes (expiration time or expiration time).<\/p>

Whatever the rate of change in the price of the underlying asset (how much the price rises or falls), if the option wins, you will still receive a fixed payment. So, your risk is only limited to the purchase value of the option.<\/p><\/div>\n\t\t\t\t\t<\/div>

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<\/path><\/svg><\/span>What are the types of digital options?<\/span><\/path><\/svg><\/span><\/path><\/svg><\/span><\/div>

When trading options, you must select the underlying asset that will underlie the option. Your prediction will be made for this asset.<\/p>

In short, when purchasing a digital contract, you are actually risking the price movement of the underlying asset.<\/p>

The underlying asset is the \u201citem\u201d whose price is taken into consideration when making a trade. The most sought-after products on the market usually serve as the underlying assets of digital options. There are four basic types of assets:<\/p>