The elements are the strike price, the payout offer, and Cryptocurrency Codex the expiry time. The strike price refers to the current price of the asset, at the time the trader enters the trade. The strike price is the one that is used to determine whether a trader wins or loses.
On the other hand, a payout offer is the amount, which the binary options broker is offering the trader, and it is known from the onset before the trader risks any money. The expiry time refers to the length of time between the moment of buying the option up to the moment when the contract closes (ranges between 60 seconds and a month). How to trade From the trader's point of view, the digital trading option works by the trader predicting whether the price of a given asset, be it a commodity, stock, currency or any other asset, is going to increase or decrease within a given amount of time. In other words, the trader bets money on this given prediction.