Digital 100s trading is a type of trading that involves utilising digital 100 options.
Digital 100s require you to predict the outcome of a yes/no position – ‘the FTSE 100 to finish down’, for example – by the end of a defined time period.
Buying the digital 100 means that you are predicting that the given outcome will be true, whereas selling it means you are predicting that the given outcome will prove false. The cost of the digital 100 will reflect the volatility, current movement and price of the market and time left before expiry.
IG offers digital 100s, with expiries from five minutes to monthly. We price them at a value between 0-100, according to the three factors listed above (time to expiry, the underlying market’s current value, and our expectation of future volatility).