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

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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

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

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

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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.

7 Binary Options

IQ Option recently introduced Classic Options, the long-awaited addition to our family of financial instruments.

So what is so remarkable about this new financial instrument? How is it different from the binary options you are already familiar with, and what can classic options do for you?

Let’s take a look. First of all, let’s compare classic and binary options and identify their key differences. While binary options are often called “all or nothing” options because you know the profit percentage for a successful trade in advance, classic options literally have no upper limit on their profit potential. While the maximum earnings on binary options was 91%, with classic options we have already seen yields around 5000%. Yes, you heard right!

The yield on classic options can reach mind-blowing levels. It’s hard to imagine that you could invest $10 and earn $500, but it’s true. In addition, the minimum investment for binary options was one dollar, while you can purchase classic options starting from 6 cents per option. And don’t forget that losses are limited to the amount of your investment. So your potential profit is unlimited, but your losses will never be more than the amount you invest in the asset. Another striking feature of classic options is that you can exercise your purchased options at practically anytime and take your profit without waiting for the expiration.

With the launch of classic options, IQ Option also expands its arsenal of available assets to cover the entire S&P 500, the list known to every economist as the 500 most profitable American companies.

And this makes fundamental analysis much simpler and more rewarding.

It’s one thing to sit and wait for news from the world financial elite and analyze statements by Mario Draghi and Marine Le Pen in order to predict the behavior of a currency pair.

When you have the entire S&P 500 list of assets available to you, financial analysis is much easier to understand and apply.

The S&P 500 covers almost every industry and product, so you can trade the shares of a company that means something to you. Is Netflix launching a new series? Is Nvidia releasing a new video card? Did Lockheed Martin announce a new weapons contract with the U.S. government? Is 21st Century FOX shooting a new blockbuster?

Now you have the chance to make a profit based on corporate news that you were probably already following. Besides, all classic options can be traded on the real stock exchange. This instrument will be commission-free for the first three months so that everyone has a chance to try it out and fully appreciate the advantages of classic options. Classic options may seem more complicated at first than the binary options you are familiar with. And in general, they are. But IQ Option has lived up to its name and reputation once again and developed a unique, intuitive system for trading with this instrument. For the convenience of our traders, the platform offers multilingual training videos that explain the concepts and features of classic options, and if you have any unanswered questions, IQ Option has a support team available 24/7 to provide prompt and thorough answers.

There is clearly a certain level of difficulty involved in trading classic options, which reinforces their higher profitability. However, IQ Option does everything possible so that anyone can trade in this instrument, with in-depth training and round-the-clock support. Classic options offer vast trading potential coupled with a simple and user-friendly trading terminal, which makes this a unique financial instrument that will be appreciated by novices and experienced traders alike. The chance to trade assets familiar to you means you can profit off of your passion for news and information.

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IQ Option Review

More than 500 different trading assets available

Occasionally you will come across a binary options broker site that is distinct in their product offering and service. This is the case with IQ Options.

They give binary options traders a user-friendly trading platform, educational materials and the lowest minimum deposits in the market.

Overview

Created in 2020, IQ Option is somewhat a late entrant into the binary options trading industry. It’s owned and operated by IQ Option Europe Ltd. Their physical location is at Limassol, Cyprus please see below for the full information. They’re regulated by CySEC under license number 247/14. A broker licensed by CySEC caters for residents living in Europe. Always choose a licensed broker to protect yourself from the many online trading scams.

Getting Started

The minimum investment of $1 per trade (the lowest in the industry) makes IQ Option convenient to access. This is in contrast to some brokers who demand a deposit minimum of $100 before opening a live trading account. It is user friendly for traders to start speculating with with IQ Option. If you are a big risk taker, the maximum investment is $5,000 per trade.

Trading Accounts

There are three different types of accounts:

1) Demo Account. Some of its characteristics are:

  • Practice trading free of charge
  • 13 trading assets
  • Trading options are restricted

2) Real account characteristics are:

  • All 500+ trading assets are available
  • Minimum trading balance is $10
  • You can take part in trading tournaments
  • Full access to trading opportunities
  • Speedy withdrawals (within 1 days)

3) VIP account characteristics are:

  • Minimum deposit is $3,000 to access VIP
  • Unrestricted access to trading opportunities
  • You can take part in trading tournaments
  • Personal Manager
  • Monthly trading analysis from an analyst

Trading Platform

User friendly and intuitive platform is great for speculating binary options on ups as well as downs from a small to large deposit. Some of its features are:

  • Real-time asset price movements. Follow price changes through real-time charts
  • Technical analysis panel and tools
  • Apart from the common tick charts, you can also use candlestick charts
  • Top trader’s stats and best deals that show how much profit the best investors made. You can learn from their experience
  • Future price movement predictions made by professional investors
  • Relevant financial news directly through the trading platform

Trading

IQ Option supports many assets and various trading options. This flexibility allows you to grow with the platform as you gain experience. Some of the assets available through the broker are financial markets such as the Asian and Latin American broker’s boards. Others are Itau Uni-Banco holdings, ALIBABA, Avotovaz, China BAK, BBVA, Loha Renner, and PetroChina. This allows traders to pick stocks from other popular companies around the world instead of trading in currency pairs.

IQ Option currently has more than 70 different trading assets available. They include:

  • Stocks – shares of more than 50 big companies such as Gazprom, Daimler, Barclays, Apple and Rosneft
  • Indices – most traded are FTSE 100, DAX, Nikkei-225, CAC 40, Dow Jones and S&P 500
  • Commodities are Gold and Silver
  • Currency pairs such as EUR/USD, GBP/USD, AUD/CAD, EUR/JPY, USD/CHF

How do Binary Options Work?

A binary option asks a yes or no question. Will this market be higher than this price now? If you think it will, you buy the option. If you think otherwise, you sell. In both scenarios, your buying or selling price could be between $0 and $50. Whatever you pay is your maximum risk. You can’t lose more. Hold the option until it expires. If you’re right you get the full $50 profit less the buy price.

Option Types

IQ Option has simplified trading. As an investor, you can have the option expire in 60 seconds (Turbo options). Or you can be more cautious by choosing expiration times such as 30 minutes or the longest option of 24 hours. 60-second options are ideal for traders who desire quick profits and lots of excitement. But they are much riskier than longer maturity options – novice traders are advised to avoid them. You can make huge profits, but losses are also common.

Banking

There’s a wide variety of deposit options. You can make deposits with all major cards (Visa and MasterCard), Skrill, bank transfer, WebMoney, QIWI, Yandex Money, PayPal, Liqpay, and Moneta. For withdrawals, you’ll have to use the same medium you used to deposit. This is to guard against money laundering. Real money account withdrawals are processed in 1 working days.

Customer Support

Customer support services are accessible to traders’ 24/7. You can contact a customer representative by telephone, email, or live chat. IQ Option also has a variety of educational materials to assist you to become a successful trader. Expert help will help you learn how to use the platform to succeed. The educational program helps traders understand binary options, how to analyze markets, how to use different strategies and understanding different indicators. Educational materials are free to access once you create a demo account.

  • Free demo account
  • Smallest minimum investment in the industry
  • Interactive learning tools
  • Friendly interface
  • Excellent returns
  • Practical trading platform
  • Professional and regulated broker
  • The maximum payout ratio of 91%* is amongst the highest in the industry.
  • Only 2 types of Options Contract Available
  • Exemption of residents in the US, Japan, Canada, Israel, Syria, Sudan, and Iran
  • iOs mobile app unavailable in Malta. Android unavailable in Malta, Myanmar, Liechtenstein and Cuba.

Conclusion

In comparison to other binary brokers, IQ Option offers traders good trading conditions. Few brokers can match their rebate and payout ratios. The low minimum deposit has made binary trading affordable to many people. However, binary options trading is not ideal for everyone. Make sure you fully understand the risks involved before you indulge.

Classic Options

Calssic options is same as digital options. What is classic stock options? how start trade? How does it works? Watch intro video about Classic Stock Options:

One of the popular way to trade on iq option showed on the video sample.

Classic Options Trading The Fundamentals

Classic Options represent a straightforward tool used for a powerful trading instrument. The video describes the steps to trade Classic Options and unlock their full potential. Considering that you have already watched the video and familiarized yourself with the necessary steps, please have a look at the key highlight points: The first and foremost parameter in any deal with classic options is the strike price. Strike price represents is the projected value that is anticipated to be achieved or surpassed by the asset.

There are 5 strike prices, which can be selected at the right panel
Majority of assets offer up to 5 strike price options. The further the strike option is from the current market value, the higher the risk of the investment is. The key advantage of classic options is that the higher risk in actual fact decrease the option price, while improving the overall profitability. The second parameter determining the profitability is the date of expiry. The expiration date denotes the deadline for the right to sell or buy the asset with its strike price. Generally, the expiration time is at the work week end (i.e. on Fridays at 21:00 GMT). It is possible to buy an option at the current week end or the following week, or for the chosen month’s last week.

Selection of the expiration time (3 points available)
The further the expiration date is from the current date, the higher is the likelihood of the asset price to move in the direction that buyer needs. Hence, the higher is the options price. The third parameter is the single options price. The options cost is defined by the market. IQ Option manages to perform scanning throughout 13 various stock exchanges in order to select the best offers for selling and buying prices. Basically, it is acting as a hub where it is possible to get the best deal for each trade.

It is impossible to change the options price, since it is determined by the market. However, it is possible to select the amount of options to be bought.
The market conditions affecting the situation are: demand and supply among traders, price volatility in the past and the remaining time before expiration. If a trader is lacking in terms of experience, it is advised to use classic options with practice account. In case, if you require any additional assistance related to Classic Options, feel free to contact our professional Customer Support Team.

Comparison of option types (5) – Digital Options

There are numerous types of binary options offered by brokers for trading: Touch options and No-Touch options, traditional medium-term up/down options offered by all brokers, ladder options and much more.

Every trader must answer the same questions: “Which of the options are the best for trading? Why choose a broker based on the type of options and expiry time?” In our today’s article, we are going to explore in depth digital options, which is, in fact, nothing else than a fancy name for ladder options.

Digital binary options by IQ Options

This is a type of options in which the trader determines the strike price, which is the key to the achievement of the potential profit. Same as the ladder binary options, digital options (btw. IQ Option is the only broker in the market to offer this type of options) are somewhat more complicated to understand than other types of options. Therefore I will do my best to explain this in simple terms. Let’s start with a picture.

As you can see in the picture, it is the trader who sets the strike price – like in a ladder

The picture shows the concept of digital options trading. The trader again speculates over the future price development, same as with normal binary options. This time the strike price is not limited. Therefore, the trader can choose which one he or she wants to use.

How do the digital options work?

Let’s take one more look at the picture. What we can see is the following:

  • The current price of the asset in the picture is 1.12625
  • The prices on the left hand side are as follows: 1.1267, 1.1266, 1.1265 etc.
  • When you click on the different price buttons, a different percentages (your profit) shows up

When trading digital options, it is the trader who selects from a few pre-set strike prices the one he or she wishes to use. Speculations are over the final price (…is it going to be higher or lower than the strike price?). The current closing price of a trade predetermines the future profit from the trade.

Example of trading CALL when trading ladder options (size of trade: $100)

The example in the picture shows the way it all works. (Though the picture depicts LADDER options, in reality the process is the same).

Let’s assume that the picture is a real graph. After opening a trade worth $100 upward (shown on the ladder on the right) we can see that the profit grows proportionally with the risk. We will earn more if we believe that the price is in a strong uptrend and, before reaching the expiry date, has grown much higher.

Video: Trading of digital options

I am going to outsmart them!

Some of you may say: “Well, I am going to set the lowest strike price there is, because the chances that the price falls so low are minimal! This way I will never lose!”

Well, you are right. BUT…you must take into account that with nearly 100% certainty to win, the final profit will not be breathtaking. A trade like this may generate a profit of around 5%. This means that your profit from a USD 100 investment will be merely USD 5. Given that what you put at stake is worth USD 100, this does not appear to be fair.

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

Advantages of this type of binary options

  • With digital options you can achieve astronomic returns (more than 300% profit)
  • Using reasonable judgement with a little luck in some cases you cannot lose (supposing you use efficient hedging)
  • Unlike ladder options offered by other traders, with digital options from IQ Option you can sell the option within the expiry time to either boost the profit (in case of a successful trade) or moderate the loss (in case of bad luck).

Disadvantages of this type of binary options

  • On the other hand, highly rated options are highly risky.
  • This type of trading is more difficult to comprehend. Therefore it is not suitable for novices.

Watch our video tour of IQ Option

More information

  • Official statements about digital options: https://blog.iqoption.com/en/digital-options-introducing-a-new-trading-tool/
  • Review of IQ Option
  • Review of IQ Option (in Slovak)
  • Review of IQ Option (in English)
  • Review of IQ Option (in Polish)
  • Review of IQ Option (in Swedish)

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

8 Responses to “Comparison of option types (5) – Digital Options”

Hello, can we help you somehow?

i think if you have experience of news trading so digital option is the one of the best trading way for you.

I think there are 99 % chances of our winning here with our luck if we select the lowest strike although we will get the lower profit but we will not lose i am going to try this someone recommend me is it good to start with digital option?

Abdul, sometimes, the price can move very rapidly in the wrong direction. Be careful! But good luck.

Yeah it is true i have seen it on practice account that the price increase rapidly but as compared to binary options it is 1000 times better as we can get some profit.. In binary there is pure gambling so am i right? ?

I actually do this, but only when I have a trade that I’m already winning. For example if the price of an istrument is 100 when you start and I bought an OTM option with a strike at 103 and now the price is 105, I’d bought another with a 99 strike. I’ll also cover my bets buying an option in the oposite direction that could be smaller if it’s an OTM or bigger if it’s an ITM. Time, Risk and probabilities are key when trading digital options. The safest way to start is to only buy OTM’s with smaller sizes and big returns. For this I’ll use a standard 5min candlestick chart and a 1 min chart…to get the timing right.

Also…and this is for the pros that might read this. If you’re trading EURUSD, you can watch the futures (6E) footprint chart to asses key risk areas in the 1min timeframe. This will give you a better idea of risk and probability given that you could succesfully identify absortion levels.

With iQoption you can put a trade for the next 5min, 30 sec before the current bar is over….if you trade futures already when you see this is like watching free money.

I’ll advise that newbies trade at lest for 3months on the demo account or until they can get consistent risk adjusted returns. If not there is a 99.9% you’ll loose all of your capital.

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