New! IQ Option Classic Options

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Comparison of option types (4) – Classical options by IQ Option

There’s many types of binary options available to trade: Touch options, No-Touch options, medium-term high-low options, and many others. Classic high-low binary options are offered by all brokers in the world, as far as I know. The thing is that the IQ Option broker, who is according to our poll the most popular broker, offers two types of classic options. Let’s see what it’s about.

Yes, with IQ Option, it was always possible to trade the classic binary options. It’s simple. You just choose your prediction – will the price fall or rise? The trade ends in a few minutes and then you know your profit or loss. The profit is usually around 85%, the loss is 100%. You can as well trade TURBO options, which are the same; the only difference is the expiration time, which is within seconds and not minutes or hours.

Why did we mention a new method of trading?

It is because IQ Options came up with even more classical options, than the classic ones. Or at least they are saying so.

Try trading with IQ Option on a free practice account

Broker Info Bonus Open Account
USA Allowed No
Assets:
Payout: Up to 100 % !*
Demo Account: Yes
Min Deposit: $ 10
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*in case of correct prediction
RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK

New classic options by IQ Option

The newest type of options offered by IQ Option broker is very similar to buying shares. These classic options have a wide range of assets that can be traded and all of them are shares. Using these options you can’t speculate on the rise of commodities, indexes or currency pairs. There are just shares, and you can choose from about 500 (when all major stock exchanges are open).

These options are traded similarly as the well-known ladder options. The difference is that the profit you can make is unlimited. Yes, unlimited. So you can get even a thousand times the value of your option. The possible loss is fixed and you have to set it in the beginning of your trade. The point is that you can make more than you can lose.

This is the trading of classic options with IQ Option

We simply open the trade in the direction that we think the price of the share is going to move. The expiration time is usually three days, but we can also make a profit by closing the trade before the expiration itself. The further the price moves in our direction, the greater the profit we will obtain at the time of expiration . We can get up to hundreds percent.

However these options are more complex, so we will publish another article about it in the future for sure. The most important point is that you can perfectly use fundamental analysis to trade IQ Option’s classic options. That is mainly because of the unlimited profit we’ve mentioned before.

Is TESLA going to introduce a new model to the market, which was already pre-ordered like a thousand times? I assume that the stock price will therefore rise, right?

Official video by IQ Option

More Information about broker IQOption

Author

More about the author J. Pro

Unlike Stephen (the other author) I have been thinking mainly about online business lately. I wasn’t very successfull with dropshipping on Amazon and other ways of making money online, and I’d only earn a few hundreds of dollars in years. But then binary options caught my attention with it’s simplicity. Now I’m glad it did because it really is worth it. More posts by this author

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6 Responses to “Comparison of option types (4) – Classical options by IQ Option”

Does IQ Option have one- touch/no-touch binary options?

Hi Ronald – no, they do not have touch / no touch options. Hoverer, you can kind of make your own now, that they have CFD trading and digital options… I might post a tutorial soon, if you are interested.

Yes please. I would like to know more on this.

Is classic trading available on mobile? As I have tried to use it on mobile but it isn’t there….

Hi Dan, unfortunately I don’t think so. I havent seen it on mobile either.

I’m sure they will implement it in newer versions of the app, but nobody knows when that will be.

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

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.

Digital Options by IQ Option – Your Complete Guide

Digital options trading is one of the newest products in the IQ Option portfolio. The new trading option has attracted a lot of attention from amateur as well as seasoned traders simply because it is a short-term trade that moves rapidly and delivers a lot of adventure, fun, and excitement.

While customers can profit up to 900% if they are successful, they can lose only what they have invested if they are not successful. It has an early exit feature that enables traders to profit from trades that may result in a loss if they wait till expiry time. Expert traders can maximize their profit potential by entering into multiple trades. And if all this sounds complicated to you, it just isn’t. In fact, learning how to trade digital options is one of the easiest things in the world.

A Word of Caution

You should understand that the same features that make trading digital options so exciting can also be its biggest disadvantages.

For instance, you can handle multiple trades if you are an expert who can handle it. But you will quickly lose control if you get frustrated with your losses and try to chase them. Also, opening multiple trades just to make up for lost investments is not at all a good idea.

You can profit up to 900% in the shortest possible time as digital options come with expiry times ranging from one minute to five minutes. At the same time, you can also lose your investments in the shortest possible time.

And if you are not careful, you can get addicted to digital options trading. If this happens, you will just not know when to stop trading and call it a day. If you lose control, you can lose all the money in your account in no time.

A Closer Look at Digital Options

If you blend the best elements of on-touch options, binary options, and classic options, you get a brand new product called digital options. Available exclusively at IQ Option, it is a product that few traders can resist, especially as it is available across a wide range of financial instruments.

Here is a list of some of the most exciting features of digital options:

  • Since you can manually set the strike price, you can easily control the potential profits and risks of your trade.
  • The potential of earning is extremely high in digital options trading.
  • Digital options are based on pairs of currencies.
  • Digital options trades do not last more than five minutes, and you can enter a trade even when it has just 30 seconds to expire.
  • Digital options trading is available at IQ Option throughout the day except between the hours of 19:30 and 22:30 UTC.
  • You can exit a trade before it expires.

Brief Guide to Trading Digital Options

Trading digital options is so easy that even a beginner to trading can easily learn how to do it. Here is a step-by-step guide for traders who would like to trade digital options:

  • Choose an asset and the expiry time frame of your trade.
  • Choose your investment amount.
  • Establish the strike price.
  • If you think that the price will go up, choose the Call option.
  • If you think that the price will go down, choose the Put option.
  • You can exit the trade at expiry time.
  • However, if you feel that you are going to lose, you can cut your losses by exiting early.

The Final Word on Digital Options

If you are an expert trader, nothing can prevent you from trying out digital options. However, you must implement proper risk management technique. Avoid blowing all your capital on digital options trading just because it has a profit potential of 900%.

If you are a new trader, we encourage you to try out digital options trading on a demo account. You can easily set up a demo account and get some virtual funds for trading at IQ Option. It gives you a risk-free opportunity to learn everything about digital options trading, sharpen your skills, and test out some strategies. Once you are confident, you can start trading digital options for real.

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New from IQ Option – Digital Options

IQ Option Digital Options

If you know anything at all about online trading, you’ll know that IQ Option is one of the best and biggest brokers you can trade with. This company has been around for several years now and they have become famous for implementing various innovative and high-tech solutions. Today, we will be looking at one such solution. Digital options are a completely new trading tool, this broker’s original product that sheds a new light on online trading. They combine classic and binary options to offer traders a completely new trading experience. Naturally, given the nature of our work and the reputation IQ Option has, we simply had to take a look. Keep reading because there’s plenty to discover!

Digital Options | What’s new about them?

Like we said, Digital Options combine classic and binary options. As a matter of fact, they give you the best of both worlds. The key feature here is the strike price you set for yourself. The farther away from the current price your strike price is, the bigger the potential profit you can earn from your trade.

Furthermore, you don’t have to wait for the trade to reach its expiration time – if you see that things are not going the way you wanted, simply sell your Digital Options and mitigate your losses. You are, quite literally, in complete control in this case. You set the investment amount, you determine the strike price, you determine the profit and you determine when you will close the trade. However, because of that, a strategy is needed.

IQ Option Digital Options Definition

Digital Options | Simple to use

Given that you still have to determine whether an asset’s price is going up or down when trading Digital Options, you need to be able to extract information from our chart. To be more exact, you need to determine how far a price will move, so that you can determine the strike price correctly. Fortunately, everything takes place on IQ Option Trading Platform, an extremely well designed piece of trading software with loads of useful indicators and analytical tools. Just a passing note, the platform also gives the highest returns in the online trading world because they can get as big as 100%. You can also test things out with the demo account to prepare yourself for this new kind of trading. But, honestly, we think you’ll grasp the main concept very quickly. All this essentially is is a new trading mode for binary options, a very innovative trading mode that will keep you trading for a long time.

IQ Option CFD Trading Platform

Digital Options | Conclusion

Digital Options are a welcome new addition to IQ Option’s offer and to the online trading industry in general. They preserve the simplicity of regular binary options, but give you more flexibility and chances for profit. This is just the kind of invention we’ve come to expect from this broker – clever, interesting and easy to use. On top of that, everything is set into a familiar trading environment, so if you have already traded with this company you’ll have no problems getting used to your surroundings. If you haven’t, open an account with IQ Option right now and try out this unique trading tool. You won’t regret it!

General Risk Warning: The financial services provided by this website carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.

DISCLAIMER: Binary options are prohibited in EEA.

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