IQ Option is proud to reveal our newest trading instrument — the Classic Options. It is a perfect marriage of unlimited profitability of the stock market and the simplicity of the platform you know and love.
We’ve always followed our mission to provide outstanding conditions for binary options trading. However, we felt that this wasn’t enough and our traders deserved better profitability, more control over their risks and a wider portfolio of assets. That’s why after months of research and development we’ve created a trading instrument that checks all of those boxes.
What are Classic Options?
Classic Options are inspired by the American stock options mainly traded in the USA. The options are based on stock prices of 500 top-performing US companies, including such household names as McDonalds, Netflix, Starbucks, Apple and many more.
Classic options work a lot like like binary options: you choose the stock you would like to trade on and pick a direction in which you believe its price is going to go. There’s one major difference between these two instruments, though. With Binary Options your profit per deal is fixed, while with Classical Options it’s virtually limitless, because your profitability increases as long as the price keeps on moving in the selected direction.
How does it work?
First things first: your investment amount is determined by the contract size – the number of options you want to trade. While other stock option brokers don’t allow contracts for less than 100 units, with Classic Options you can purchase a single option if you choose to and for as little as $0.06. The price of each option is based on several factors, such as the best market price for the underlying asset, time left before expiration, volatility and the strike price.
Strike Price — a price level a trader expects for the asset to reach or surpass before the contract expires.
Depending on the asset, you may have as many as 5 strike price options to choose from.
How to trade Classic Options
When the market is close to a strike price, the option price will be higher, but the further the current market direction is from it – the cheaper the contract will be. Simply put: the price of the contract is proportional to your risks. The lower the strike price – the less risky your investment is, but it also means that your profit won’t be growing as rapidly.
It’s important to note that your losses are limited to the size of the investment, while the profitability is truly limitless. As long as the price is moving in your favor, your profit will be growing until the contract expires, and the more it surpasses the strike price, the more profit you’re going to get.
For the next 3 months this revolutionary trading instrument will be available at NO COMMISSION.Try Classic Options
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
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.