IQoption Classic Options

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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.

IQoption Classic Options

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5 советов по дневной торговле, которые можно применить прямо сейчас

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Options Types

Scheme for trading on iqoption

Wide variety of choices among different options types can eventually confuse any trader. How to make the right decision about the most suitable trading instrument? Don’t worry, the following guide is quite comprehensive and will definitely assist you in making the most proper decision.

Back to fundamentals

First and foremost, familiarize yourself with the general description of an option: An option represents a contract enabling its holder with the right to purchase or sell an asset unit at a certain price and on a certain date. An option with the ability to purchase with a certain price is named Call. An option with the ability to sell is called Put. The standard goal is applicable to both types: to generate profit based on the difference between the selling and buying price. Options can be divided into different styles (aka “families”). The majority of styles belong to American and/or European style.

American vs European options

These two types of options have got a lot of similarities. However, their differences play the most important role. The right to exercise: American style of options enables its holder to perform the contract any time prior to the expiration of the option. European options can be executed only after reaching maturity. That is the main difference between those two types affecting prices. European options usually cost less than American ones due to a better flexibility. Assets types: Almost all stock and equity options belong to American style of options. Indexes usually belong to European options.

Classic vs Traditional Options

The key difference is that both European and American options represent the “traditional” types since they are physical contracts, while Classic Options represent Contracts-For-Difference (“CFDs”). Both of them belong to derivative trading instruments. However, in case of physical contracts a trader actually purchases and sells the assets, while CFD actually provides the ability to generate profit from the price movement, while the contract cannot be concluded to purchase the actual assets. Table below provides general comparison of classic and traditional options based on 3 general parameters:
Traditional Options: Min. 100 options. All options have fees and commissions by brokers. No refund for the contract cost even in the case of no contract execution
Classic Options: Min. 1 option. No fees and/or commissions in case of trading with IQ Option. Client receives his investment back via closing the position located at a break-even point prior to contract expiry.
As can be seen from the table above, Classic Options contain a number of key advantages comparing to European and American options. However, accessibility still remains their main advantage. While European and American options can be traded only at major stock exchanges, Classic Options are readily available for everyone who uses the IQ Option trading platform. Have you previously experienced trading European, American or Classic Options? Feel free to share your experience in the Comments section provided below.

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