Popular broker IQ Option on South African market present a new financial instrument on their trading platform – Classic Options.
Classic Options can be described as mix of well-known simple to use dashboard and unlimited opportunities to profit from stock market.
IQ Option’s idea was to provide traders in South Africa to have more control over their trading portfolio as well as wider selection of assets to trade with.
What are IQ Option Classic Options?
When trading with classic options, traders also need to determine will an asset price go up or down, just as in regular binary options trading.
The main difference between classic and binary options is that in classic options, traders can close the trade whenever they want, without waiting for trade to expire.
In this case, options to profits are unlimited, while losses are controlled by the money traders invest per single trade.
IQ Option classic options are inspired by the stock market in USA, based on top 30 best performing companies from different industries (Apple, McDonalds, Starbucks, Facebook, FedEx etc).
In lot of segments, both binary and classic options have similarities since traders have to determine a stock price and its direction. However, in binary options trading profit per trade is fixed unlike with classic options, it’s not.
In classic options trading, potential profitability increases as well as stock price is going in chosen direction.
What IQ Option broker offers is opportunity to trade with 500 assets, which is an exceptional list of underlying assets on financial markets.
How to Trade Classic Options with IQ Option?
Afterwards, traders need to select an asset to trade with (it can be from the regular asset list or from trending options list).
Once asset is chosen, traders only have to determine a number of assets they want to buy. The more options are added, more money have to be paid.
However, there are bigger chances to boost income.
With classic options, South Africans are able to buy a single option. Price of particular asset is based on several elements, such as market volatility and strike price. So the lower strike price is, less risky investment traders have.
Classic options enable traders to choose a risk level and decide on possible trade profits. The higher risk involved, more money can be expected. For less riskier trades with call option, traders should choose “lower strike price” and for ones with put option, they can click on “higher strike price”.
South African traders should keep in mind how classic options are available only during the time American Stock Exchange is opened; from 9:30 am to 4 pm Eastern Time or between 2:30 pm and 9:00 pm GMT.