- February 7, 2017
- Posted by: Michael
- Category: Breaking news
IQ Option presents a completely new financial instrument – the classic options. Just like with binary options which are offered at IQ Option, you also have to choose whether the price of a classic option goes up or down. The main difference that these two financial instruments have, is that with classic options you can close the trade anytime you want. So you do not have to wait for the expiration time like you do with binaries. Maximal losses are limited to the money you invest into the trade. However, the potential gains are unlimited.
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- Website: https://iqoption.com/en/
Risk Warning: Your capital might be at risk as all types of trading carries certain risks.
Classic options at IQ Option – Introduction
Today, there are several stock option exchanges such as:
- CME (Chicago Mercantile Exchange)
- CBOE (Chicago Board Options Exchange)
- PHLX (Philadelphia Stock Exchange) – now known as NASDAQ OMX PHLX
- EUREX (International Exchange).
and more. Trading volume of these exchanges exceeds 1 trillion dollars. The main advantage of trading classic stock options at IQ Option in comparison to trading regular stocks is getting profit from expensive stocks through affordable options.
IQ Option gives you the chance to buy and sell options at the best rates from all exchanges with a minimum commission. 500 assets are tradeable as classic options with IQ Option. Such as HP inc., Apple, Amazon.com, eBay inc. , and many, many more. Classic options are not a short term trades. Now let’s look at how we can create a classic option trade and when we can trade these options.
How to trade classic options at IQ Option
- Firstly, you have to choose that you want to trade classic options – the third option when you click the + symbol, right after „Turbo“ and „Binary“.
- Then you are able to choose an asset, either from a regular list of assets or from a list of trending options, which allows you to see currently the most dynamic options.
- Once you select an asset, choose a number of options you want to buy. The more options you add, the more you will have to pay for the trade. However, you will also be able to earn more. You can see how much you will have to pay for creating the trade when you look at the call and put buttons.
In the same time, you can look at the 2 bars on the right side of the chart. A green one and a red one. Both of them are split in a half and indicate how much profit you can earn. They demonstrate, how your trade is doing, – the left side of the bar displays how much profit you can earn after the sale (when you close the trade before expiration). And the right side of the bar shows how much profit you can earn, once the classic option expires.
You can also choose a risk and a potential profit of your trade. The more risk you take the more you can earn. This can be done by selecting a strike price. (see the video above).
- When you want a lower risk with a call option, choose „lower strike price“
- When you want a lower risk with a put option, choose „higher strike price“
When the classic options can be traded
The classic options are available only when the America Stock Exchange is open. That is from 9:30 AM to 4 PM Eastern Time, or from 2:30 PM to 9:00 PM GMT.
IQ Option has more interesting functions in the sleeve
IQ Option also plans to add new trading functions to classic options such as: stop loss, take profit or partial sell off. These functions will serve to even better risk management of your trades.
Trade assets from the largest companies, indices and commodities thru option exchanges with IQ Option
Risk Warning: Your capital might be at risk