Common comparison error
Digital option is a product label, not a complete condition, observation, equality, payout, settlement, or Digits options specification.
GlossaryProducts & contracts
Digital option
A broker-specific fixed-payout label. Some platforms use digital options broadly; others reserve the term for strike-selectable contracts whose payout changes with the selected strike.
Detailed explanation
How Digital option works in practice
01
Mechanics
Digital option is a formal term for a predefined-payoff option and can be synonymous with binary option. Some platforms use Digital more narrowly for a strike-selectable mode with changing payout, so the label itself cannot establish a difference.
02
Worked example
Compare one fixed-strike and one selectable-strike contract on the same asset and expiry. Record condition, selected strike, payout, equality rule, early-exit availability, settlement source, and whether history preserves those fields.
03
Decision rule
Describe mechanics, not branding. Do not claim that Digital is inherently safer, more advanced, or more profitable than Binary or FTT without a specific contract rule and evidence.
Practical use
How to verify Digital option
Read Digital option together with American-style digital option, Digits options, At-expiration digital option. The comparison must preserve the exact rule, value, state, and evidence described below.
A neutral example
The platform's Digital option label resembles American style digital option, but archived specifications reveal different observation and settlement rules. What makes this an example of Digital option is that some brokers use the term broadly while others mean a strike-selectable contract with changing payout.
Evidence path
Where to verify Digital option
Use the source that governs the exact contract, account, entity, or platform state. A general definition cannot replace current broker terms.