A detailed and thorough parametric study of digital image correlation method is presented. A theoretical background and development of the method were introduced and the effects of various parameters on the determination of displacement outputs from the raw original and deformed image information were examined. Use of the normalized correlation coefficient, the use of 20 to 40 pixels for a searching window side, 6 variables searching, bi-cubic spline sub pixel interpolations and the use of coarse-fine search are some of the key choices among the results of parametric studies. The displacement outputs can be further processed with two dimensional curve fitting for the data noise reduction as well as displacement gradient calculation.