6 min read 

IQ Option stands as a leader in cryptocurrency and options trading. The award-winning IQ Option interface has been recognized worldwide as a user-friendly, intuitive and sophisticated platform for beginners and advanced traders alike.

IQ Option has now introduced Digital Options as a new instrument to give you more flexibility to realize your trading goals. Digital options trading give you the opportunity to profit on both up and down moves on many financial instruments, while manage your risk.

Digital Options

What are digital options and why should you trade them?

Digital Options & Their Advantages

One of the main features of digital options is that they allow you to choose a strike price of your liking, unlike regular options where it is fixed. This means you can implement a wider range of trading strategies. For example:

  • If you expect a large price move in an asset, you can choose a far “out of the money” strike price for the option. That means you will make money only if the price reaches and goes beyond the chosen strike price (above the strike for a Call option, below the strike for a Put option)
  • If, on the other hand, you expect a smaller price move, you can choose a strike price closer to the current price. This limits your profit potential but also your downside risk.

The second main feature is the possibility of choosing the expiry date of the option. With IQ Option you can choose expirations of between 1 to 5 minutes, so you can flexibly time your trade entries and exits depending on your price scenario. The third main feature is that you can choose how much money to allocate to each option trade. This allows you to manage your exposure dynamically, depending on your risk profile and trading style.

How To Start Trading Digital Options

You can start trading digital options quickly and easily:

  • Log into your IQ Option account
  • From the list of trading instruments, choose Digital Options:
    Digital options choosing
  • Choose the asset you want to trade:
    asset choosing
  • On the asset chart, choose the strike price on the right-hand side, corresponding to a different price line:
    asset chart
  • Select the expiration time of the option by clicking on the Time box on the upper right-hand side.
  • Choose the amount of money you want to invest by clicking the up/down arrows on the Amount box on the right-hand side.
  • You can now see the potential profit for both Call and Put options, based on the strike price you have chosen. Depending on what price move direction you expect, buy a Call or Put option by clicking on the green button (Call) or red button (Put):
  • You can keep the option until expiration, or you can sell it before to lock in a profit or limit a loss. Click on the Sell button on the upper right-hand side to close your position instantly:

Digital Options Trading On IQ Option

IQ Option focuses on providing the best instruments to help traders achieve their goals. Digital options are a trading innovation that offers more opportunities to profit from price trends while letting you manage your risk effectively. When you open a trading account with IQ Option you get:

  • An award-winning trading platform open 24/7
  • A free practice account, so you can practice and refine your trading strategy with virtual money before you trade real money
  • Bitcoin trading plus another 11 cryptocurrencies, including Ethereum, Dash and Ripple
  • More than 16 technical analysis indicators to help you time your trades
  • An extensive video series on how to profit from trading indicators
  • A VIP Account Manager who speaks your language
  • Free account insurance up to a value of €20,000, making your money safe

For any questions on trading digital options please contact the IQ Option team at support@iqoption.com. You can also reach us by phone 24/7.

Trade here

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.

Recommended for you