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Investments glossary

Digital Option

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Quotes of the day:

There is no moral middle ground. Indifference is not an option. ... For the sake of our children, I implore each of you to be unyielding and inflexible in your opposition to drugs.

— Oliver L. North

A digital option is a type of options contract that has a fixed payout if the underlying asset moves past the predetermined threshold or strike price. There’s an upfront fee called the premium for digital options, which is the maximum loss for the option.

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