Digital Option

Digital Option
An option whose payout is fixed after the underlying stock exceeds the predetermined 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.


Investment dictionary. . 2012.

Игры ⚽ Нужно сделать НИР?

Look at other dictionaries:

  • Digital option — Digitale Optionen (oder Binäre Optionen, Bet Optionen) sind Finanzderivate die von Optionen abgeleitet sind und zählen zu den exotischen Optionen. Cash or Nothing Option Cash or Nothing Optionen sind Optionen mit einem festgelegten… …   Deutsch Wikipedia

  • Digital-Option — Digitale Optionen (oder Binäre Optionen, Bet Optionen) sind Finanzderivate die von Optionen abgeleitet sind und zählen zu den exotischen Optionen. Cash or Nothing Option Cash or Nothing Optionen sind Optionen mit einem festgelegten… …   Deutsch Wikipedia

  • digital option — See binary option …   Big dictionary of business and management

  • Double digital option — A double digital option is a particular variety of option (a financial derivative). At maturity, the payoff is 1 if the spot price of the underlying asset is between two numbers, the lower and upper strikes of the option; otherwise, it is 0. A… …   Wikipedia

  • Option style — In finance, the style or family of an option is a general term denoting the class into which the option falls, usually defined by the dates on which the option may be exercised. The vast majority of options are either European or American (style) …   Wikipedia

  • Digital rights management — (DRM) is a term for access control technologies that are used by hardware manufacturers, publishers, copyright holders and individuals to limit the use of digital content and devices. The term is used to describe any technology that inhibits uses …   Wikipedia

  • Option (music magazine) — Option Issue #69, July/August 1996. Executive editor Scott Becker Categories Music magazine Frequency Bimonthly …   Wikipedia

  • Digital terrestrial television in the United Kingdom — encompasses over 100 television, radio and interactive services broadcast via the UK s terrestrial television network and receivable with a standard television aerial. The majority of services, including those from the existing five analogue… …   Wikipedia

  • Digital signage — Digital sign video clip, Dearborn, MI Digital signage as flight information display system at the Taiwan Taoyuan International Airport. Digital signage is …   Wikipedia

  • Digital artifactual value — is a preservation term that refers to the intrinsic value of a digital object, rather than the informational content of the object. There are currently no established standards for what constitutes digital artifactual value. Nonetheless, born… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”