Digital 100s are a form of limited-risk trading that allow you to speculate on whether or not an event will occur within or at the end of a set timeframe. The only possible outcomes are ‘yes’ and ‘no’. If you think the event will occur, you buy the digital 100. If you think the event will not occur, you sell the digital 100.
You can trade digital 100s on a range of popular FX pairs, indices and commodities.
The settlement price is the reference price for digital 100s, which determines whether a specified event has occurred. The outcome of a digital 100 (whether you win or lose) is determined by whether the settlement price is higher or lower than your chosen strike price, or within a specied range, when the digital 100 expires.
No, with digital 100s your potential profit or loss is displayed on the order ticket before you enter into your trade. You can’t set stop-loss or take-profit orders, and it doesn’t matter how much above or below the original price the instrument's price is at the end of the digital 100 expiry.
Digital 100s are priced between 0-100. If the price is closer to 100 then the event is more likely to occur, while if the price is closer to 0 then the event is less likely to occur. The outcome of a digital 100, that is whether or not a specified event has occurred, is determined against the reference price, known as the settlement price. Please click here for more information.
We offer our full advanced charting package, with over 80 technical indicators and drawing tools as well as pattern recognition.
The history tab will display any closed or settled digital 100 trades in chronological order, and separated by date. It will display the buy/sell price, units, settlement price, buy/sell time, digital 100 expiry, digital 100 type, and profit or loss.
You can see the status of all of your open digital 100s under the 'Positions' tab within the digital 100s window on the platform.
You can do this by selecting the live streaming buy and sell prices provided next to the strike price.
To close or reduce a trade, select the red ‘Close Out’ X to bring up an order ticket. To close ‘All’ select ‘X’ on the aggregate row, or to close an individual trade select ‘X’ on the individual position row. To partially close a trade, you will need to reduce the ‘Size’ of the trade. The wording at the bottom of the ticket will change to indicate that you are reducing your trade rather than closing it.
Digital 100s are accessed via an icon in the main toolbar or via an additional option within the product library.
To close or reduce a position, select the red ‘Close Out’ X to bring up an order ticket. To close ‘All’ select ‘X’ on the aggregate row, or to close an individual trade select ‘X’ on the individual position row. To partially close a position, you will need to reduce the ‘Size’ of the trade. The wording at the bottom of the ticket will change to indicate that you are reducing your position rather than closing it.
We offer a range of timeframes, from five minutes to weekly. We offer two daily digital 100 expiries for certain instruments. The earlier expiry will be displayed as D1 and the later expiry will be shown as D2.
Digital 100 trades are netted by default (per product, type, timeframe and strike price); therefore it’s not possible to hold both a long and short open trade in the same digital 100 type, expiry and strike price.
You don't need to deposit any funds to open an account with CMC Markets but you will need to make a deposit of at least the minimum premium before you can place your first digital 100 trade.
Digital 100s and options are two separate products. We do offer digital 100 trading, but currently we don’t offer options trading.
Our Client Management team is here to help if you have any questions, 24 hours a day, five days a week from Sunday night until Friday night.
Tel: 1800 559 6000
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The strike price is the target price against which a digital 100 outcome is subject to settlement. So, if you buy a Ladder digital 100 on the UK 100, the settlement price will need to be above or equal to the specified strike price at the end of the digital 100 expiry to make a profit.
When you close a digital 100 trade early, or it expires, an amount equal to your digital 100 amount plus or minus any realised profit or loss will be credited back into your account.
Digital 100s have a buy and sell price, which will always be set between 0 and 100. If the event occurs, the digital 100 settles at 100 and if the event does not occur, it settles at 0. Your profit or loss is the difference between 100 or 0 (depending on whether you have won or lost) and the level at which you bought or sold your digital 100. Generally when entering a digital 100 trade, if the price is closer to 100 the event is more likely to occur, while if the price is closer to 0 it is less likely to occur.
Digital 100s will become non-tradeable a short time before the end of the expiry, or the pre-close period. This period will vary between 30 seconds and two minutes, depending on the digital 100 expiry and is displayed in the product overview, which is accessible in the top-left of the digital 100 module.
The maximum amount at risk is displayed on the order ticket and will be deducted from the cash in your account at the point when the digital 100 is opened. Therefore, you cannot lose more than your initial investment.
To view a chart displaying the digital 100 trade details, select a strike price area within the positions window. This will load a chart displaying details about that trade, including a trade triangle which shows where you have entered the trade and its direction, the strike price, digital 100 expiry and current and historical settlement price.
Yes, digital 100s are available on our demo account.
The CMC Markets trading platform is web-based, so there is no need to download any software and you can access the platform from any computer with one of the common web browsers. We also provide free mobile trading apps for iPhone, iPad and Android™ – just search for 'CMC Markets' in your relevant app store.
If you're new to CMC Markets, you can apply for a live CFD account online to trade digital 100s. When your application has been approved and you’ve funded your account, you will be able to place your first digital 100 trade within the Next Generation platform through your CFD account.
If you're already a CMC Markets client, just log in to the platform and choose 'Digital 100s' from the top navigation toolbar.
We offer four types of digital 100s:
Ladders: Ladders ask whether the settlement price will be at or above a specified strike price at the end of the digital 100 expiry. Choose from a number of pre-determined strike prices. If at the digital 100 expiry the settlement price is at or above your selected strike price then the digital 100 will settle at 100. All digital 100s have to settle at either 0 or 100 and there can never be an outcome that results in a draw.
Up/Down: Up/Down digital 100s ask whether the settlement price will be at or above the previous period’s close at the end of the digital 100 expiry. Up/Downs are a type of Ladder and the event outcome is determined in the same way. Generally only one strike price is listed for an Up/Down and it is set to the underlying product’s previous closing level, which will vary depending on the timeframe and product. If at the end of the digital 100 expiry the settlement price is at or above the strike price (the previous period's close) then the digital 100 settles at 100.
One Touch: One-Touch digital 100s ask whether the settlement price of a digital 100 will reach a specific strike price before or at the end of the digital 100 expiry. For example, will the US 30 reach 17,600 at or before 9pm? The settlement price only has to touch the strike price once for the digital 100 to immediately settle at 100. If the strike price is not touched before or at the end the digital 100 expiry, it will settle at 0.
Range: Range digital 100s ask whether the settlement price will be within a specified range at the end of the digital 100 expiry. In other words, will the US 30 settlement price finish between 17,600 and 17,700 at 9pm? For the outcome to be a ‘yes’ and the digital 100 to settle at 100, the settlement price has to finish at or above the lower strike price and below the upper strike price. If the settlement price is outside the 'range', the outcome will be 'no' and the digital 100 will settle at 0.
As with Ladders and Up/Downs, if the settlement price at the end of the digital 100 expiry is equal to the specified strike price, the digital 100 settles as if the market expired above that strike, so there is always a ‘yes’ or ‘no’ result. So if the settlement price at the end of the digital 100 expiry is equal to the lower strike price of a range, the digital 100 settles at 100. If the settlement price at the end of the digital 100 expiry is equal to the upper strike then the market settles as if it was above that strike level, which would result in the digital 100 settling at 0.
No, we offer 100% automated execution. We are completely transparent with the size available to trade.
Digital 100 trades may be closed partially or fully prior to expiry. There are a couple of exceptions, however:
- Digital 100 trades can only be closed during digital 100 market hours
- Digital 100 trades cannot be closed out during the ‘pre-close period’
Our digital 100s are approved by the Monetary Authority of Singapore (MAS).