Classic Options are a simple tool for a powerful trading instrument. Watch our video to find out how to trade Classic Options to reap their full potential.
1)The strike price is the main and the first parameter of any classical option. It’s the projected value the asset is expected to surpass or to achieve.
The trader can choose from up to five strike price options in the majority of assets. The level of investment risk is rising when the strike price is moving further from the current market value.
What attract traders in classic binary options — the possibility to earn much more money. With the high level of risk the price of option lowers but at the same time increasing its the profitability. This is the highlight, to try your analytical skills and get the chance to get super profit.
2)The next parameter is the expiration date and it will determine your profitability
The expiration date is the time when trader can freely sell or buy the asset for the strike price. The expiration date is the deadline and it comes at Friday, 9 PM GMT. While classic options trading you have the choice to make purchase for example for the last week of the month, on the following week or for the end of current.
The option become more expensive when the price of the asset is moving in traders’ predicted direction and the further the expiration is from the current date.
3)The last that we mention, but not the less important is the price of a single option. Here, the market situation determine the cost of an option. The algorithm of an IQ Option platform simplifies the work of a trader by scanning through 13 stock exchanges and offers the best variants for selling buying prices. Simply put it’s like a hub with best deals.
Also, certain conditions of the market can play a role in trade process, such as:
- past price volatility
- demand and supply among traders
- the time left till expiration
So after reading this article and watching the videos you have somewhat clear understanding in classic options trading strategies, how it work and what knowledge you should have, to start trading. But if all this information wasn’t enough to start investing money you can try our practice account. It will give you practical skills of online trading with Classic Options. In case of additional info or advices, you can always contact our professional support team.
General Risk Warning: The financial products offered by the company 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.