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Digital Option

外汇网2021-06-19 13:47:56 158
An option whose payout is fixed after the underlying stock exceeds the pdetermined threshold or strike price.

Also referred to as "binary" or "all-or-nothing option."

The value of the payout is determined at the onset of the contract and doesn't depend on the magnitude by which the price of the underlying moves. So, whether you are in the money by $1 or $5, the amount that you receive will be the same.

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