Turbo binary options iq option
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It combines features of both classic and binary options. A digital option provides an opportunity to trade a variety of instruments.
The profitability and the risks of each deal will depend on a manually chosen strike price, which is its main distinctive feature. A Digital Option price chart as displayed in the IQ Option trading terminal Breaking Down Digital Options Digital Options offer a high degree of freedom and a higher earning potential than binary options, the profitability of which is predetermined.
A trader can vary the amount of potential profit and risk by simply adjusting the strike price. When moving the strike price closer to the current level of prices, a trader will decrease the potential profitability of turbo binary options iq option deal and at the same time limit the amount at risk.
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Conversely, a trader can take the additional risk by pushing the strike price further from the actual prices and hope to receive higher profit. Risks and profit potential depends on the distance between the actual and strike prices Traders have a chance to choose between one and five minute expirations.
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A Digital Option can also be sold before the expiration date. If the trader feels that the trend is taking the wrong direction, he is free to sell the option at any time.
The deal can be set up with just a few clicks. Here are the steps you would want to take in order to do so.
Wait for the expiration time to come or sell the option prematurely. Basically, there are only three parameters apart from the asset type the trader will have to adjust when setting up a deal: the amount of money invested, the time period and the strike price.
Nonetheless, the number of strategic options available is high. Depending on various factors, some traders will consider it unwise to choose the strike price that is too far away from the current price level if they believe the price will simply not reach the desired level.
Note that digital options will expire-in-the-money only if the actual price is not identical to the strike one.
For call options it should exceed the strike price by at least one pip, for put options it should fall behind the strike price by at least one pip. Different strike prices should be used for weak and strong trends Mitigating the Risk Risk management rules apply to digital options deals too.
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. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.