Digital options became available for everyone at the IQ option platform

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Digital options became available for everyone at the IQ option platform

We are glad to inform you that Digital Option is now available on one of the best trading platforms of binary options – IQ Option. Digital Options have both similarities and differences from binary options. The entry point to the market of digital options is called strike. Strike in Digital Options will be called the price level, which will be the most profitable for opening a trading position. In binary options strike price is a price that displays a certain position of the asset price chart at the time of the deal.

Increased efficiency of trading

Broker IQ Option allows you to use 22 different types of strikes. The number of strikes available to you will depend on the scale of the assets schedule and the state of the market of the asset you are trading. Another good news, digital options have higher yields compared to binary ones. The maximum profit in this instrument, according to the IQ Option, will be increased to 900%

Additional risk management with digital options

Digital options have additional opportunities to manage trading risks. You will have the opportunity to purchase several options at the same time. Combine this feature with a large number of possible strikes and you get maximum efficiency from trading digital options. One of the most interesting advantages of digital options is that you can open trading positions in advance. This is a small plus that will allow you to enter the market already with a profitable position. But, in this case, the percentage of profit will be significantly lower, due to lower risks compared to binary options.

Features of Digital Options

Digital options have features that give the trader new opportunities to implement complex trading strategies in the options market. Earlier we already talked about the fact that a trader has the opportunity to close his position until expiration (not later than 20 seconds before the end of the transaction). It is also possible to fix your profit, taking into account the current price of the option. Also you have an opportunity to return a part of the invested funds.

Digital Options and IQ Option

IQ Option is rapidly moving forward and sets the pace for all brokers of binary options and not only. The company really cares about the trader. Since the number of financial instruments available for trading is growing rapidly. We recommend trading with the IQ Option broker not only with digital options, but with other tools that are available within the trading platform. Binary options gave a good impetus for the development and popularization of trading. The positive trend is being monitored to this day. IQ Option will also soon launch Forex, CFD and ETF. Follow the news on our website and you will find out about this one of the first.

“General Risk Warning: Binary options trading carry a high level of risk and can result in the loss of all your funds.”

Digital Options. Introducing a New Trading Tool

A Digital Option is a new trading tool developed by IQ Option. It combines features of both classic and binary options. A digital option provides an opportunity to trade a variety of instruments. The profitability and the risks of each deal will depend on a manually chosen strike price, which is its main distinctive feature.

A Digital Option price chart as displayed in the IQ Option trading terminal

Breaking Down Digital Options

Digital Options offer a high degree of freedom and a higher earning potential than binary options, the profitability of which is predetermined. A trader can vary the amount of potential profit and risk by simply adjusting the strike price. When moving the strike price closer to the current level of prices, a trader will decrease the potential profitability of the deal and at the same time limit the amount at risk. Conversely, a trader can take the additional risk by pushing the strike price further from the actual prices and hope to receive higher profit.

Risks and profit potential depends on the distance between the actual and strike prices

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Traders have a chance to choose between one and five minute expirations. A Digital Option can also be sold before the expiration date. If the trader feels that the trend is taking the wrong direction, he is free to sell the option at any time. The deal can be set up with just a few clicks. Here are the steps you would want to take in order to do so.

Trading Digital Options

To make a deal the investor is required to take the following steps:

  • Choose the desired asset,
  • Choose the expiration period,
  • Choose the amount of money he wants to invest,
  • Select a strike price,
  • Click “ CALL ” if he believes the price will go up or “ PUT ” if the price in his opinion is supposed to go down.
  • Wait for the expiration time to come or sell the option prematurely.

Basically, there are only three parameters apart from the asset type the trader will have to adjust when setting up a deal: the amount of money invested, the time period and the strike price. Nonetheless, the number of strategic options available is high. Depending on various factors, some traders will consider it unwise to choose the strike price that is too far away from the current price level if they believe the price will simply not reach the desired level. Some other traders will go for a higher/lower strike prices, being ready to accept the additional risk while chasing higher returns.

Note that digital options will expire-in-the-money only if the actual price is not identical to the strike one. For call options it should exceed the strike price by at least one pip, for put options it should fall behind the strike price by at least one pip.

Different strike prices should be used for weak and strong trends

Mitigating the Risk

Risk management rules apply to digital options deals too. Some traders believe that allocating more than 3% of one’s trading capital to a single transaction is too risky and does not help trading in the long run. Taking your time to learn and practice different trading strategies and techniques on a Practice account is always highly recommended.

NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.
In accordance with European Securities and Markets Authority’s (ESMA) requirements, binary and digital options trading is only available to clients categorized as professional clients.

GENERAL RISK WARNING

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
87% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

IQ OPTION granted access to the classic options platform

IQ OPTION: Boost your income with Classic options

The wonderful news about the possibility of trading in classic options was presented by one of the best binary options brokers – IQ Options. The new advantage of one of the simplest and most reliable platforms introduced this opportunity for even greater profitability from transactions.

IQ Option is one of the most popular platforms on the binary options trading market. This innovation was primarily aimed at expanding the available portfolio of assets and more thoughtful risk management. The purpose of creating this trading instrument was also to increase the overall profitability of the usual financial instruments that were already well known to the trader.

What do we know about classic options?

Classic options have been recreated in the image of all well-known options that have become widespread in the US. The price of the formation of classical options are the prices of more than 500 of the world’s largest companies, which list includes all well-known “giants”. IQ Option cooperates with 13 stock exchanges to obtain reliable information on price changes. This will give all willing traders the opportunity to gain good experience in trading classic options with the help of the IQ Option broker.

Classic options from IQ Option provide access to trading stocks of more than 500 largest US companies!

The principle of trading in classical options is very similar to trading all well-known binary options. What is the essential difference between these two kinds of options? The income from the process of trading binary options is limited to the maximum percentage of income. In the case of trading in classical options – income is almost unlimited. The increase in profitability will depend only on the direction in which the price will move. The most important factor is the opportunity to complete the transaction at the right time. This significantly reduces the risk of losing revenue on such transaction.

Principle of operation

The size of the contract is determined by the volume of your investments in other words – this is the number of options that are available to you for trading. IQ Option does not limit the minimum contract size to a hundred options. Using trading in classic options, you can buy one option at the minimum price of $ 0.06. Factors that determine the price of each option (example):

  • The best market price of the underlying asset
  • Time to expiration
  • Volatility
  • Strike-price.

The strike-price – is the price level at which, under the forecasts of the trader, the level of which will be reached or surpassed by a specific asset before the expiration of the contract.

Depending on your choice of asset, you can be provided with up to 5 options for a strike price to choose from.

How to use classic options in trading

When the chart shows the approach to the strike price, the value of the option you choose rises, but when the chart shows the withdrawal of the indicator from the strike price, the contract price will directly decrease proportionally. As a result, we can note the proportionality of the contract price and risk. The indicator of the level of risk is the strike-price. The lower the strike price the less you risk losing the deal. Conversely, the higher the price, the greater the risk.

The loss of money in such a transaction is limited only by your investment. Profitability in this case is unlimited. The movement of prices in the right direction will raise your level of income. The higher it will be in relation to the strike-price, the more will be your income.

The first three months of using this tool will be carried out WITHOUT COMMISSION.

“General Risk Warning: Binary options trading carry a high level of risk and can result in the loss of all your funds.”

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Broker!
    Perfect for beginners!
    Free Demo Account! Free Trading Education!

  • Binomo
    Binomo

    Only for experienced traders!

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