Digital Options have made their way to the IQ Option trading platform a while ago and a lot of people have appreciated them since then. Now, you have an opportunity to trade a completely reworked version of this instrument, called Spot Strike Digital Options. What’s so special about it and why you might want to give it a try? Read in today’s article.
The first thing you notice when trading Spot Strike Digital Options, is that you do not have to choose a strike price, as there is only one option available. Spot Strike options are called that for a reason. The asset price at the expiration will be compared to the strike price. The strike price, in turn, does coincide with the spot price at the opening.
New Digital Options are traded on two time frames: 1 or 5 minutes. Both are considered short-term and should be traded accordingly. It is usually said that technical analysis is better suited for short-term deals, as opposed to fundamental analysis. Yet, fundamental events can influence the price action at times of major events and announcements and should not be completely discarded.
Here is how to trade Spot Strike Digital Options on the IQ Option trading platform:
- Click on ‘Open New Asset’ and choose ‘Digital’ from the drop-down list,
- Choose the asset you want to trade,
- Specify the time interval and invested amount,
- Push HIGHER if you believe the asset is going to appreciate and LOWER if the opposite is true.
And that’s it. Don’t forget that there is an opportunity to close the deal prematurely. In this case you will receive a portion of profit / incur a partial loss based on the current price.
Spot Strike Digital Options are an instrument with fixed profitability. In case of a successful deal the trader receives the amount that is specified below the Higher/Lower buttons. In case of a loss-making deal, the trader will lose the invested amount.
Please note that the new version of Digital Options is only available to clients with a confirmed professional status.
For those of you interested in conventional Digital Options, there is still a way to trade them. In order to do so click on the ‘Time’ box in the top-right corner of the screen and then on the small gear sign. Then choose the ‘Nearest Strike’ and you are good to go!Trade now