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This image tells us that the first type let only current price participate in marketing. However, the second one let both current and exercise price participate in marketing.
Dealers-in-goods are responsible for setting the exercise price. You can see it at the picture below. At any moment you have access to 22 strikes.
Strike is a price level similar to the usual level of option opening. Our aim is to predict where the price will be at the time of the option closing relating to this cost level — higher or lower.
The more distantly the strike is situated from the current price, the more profitable it is. Put simply, at first we choose strike and then choose the direction.
Such a combination gives an opportunity of buying cheaper option. For example, you may choose strike which is situated considerably lower than the price and open a bull transaction.
You may also choose a strike situated higher than the price is and open a bear transaction. It is clear that such a transaction earning power will be considerably lower even if the prediction was right.
If you want to start IQ Option marketing right now but do not know how to do it, the following video is likely for you.
Register Install Install. Ticker Tape by TradingView. Ultimate trading platform. Currencies, commodities, stocks and crypto. Multichart layout.
Mood of the market in the current trading session, in real time. Over most widely-used technical indicators. Manage your losses and profits at the levels predetermined by you.
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Financial products such as Options and CFDs are complex instruments that carry a high level of risk. Such products can lead to investors potentially losing the entirety of their invested capital.
Please ensure that you understand all the risks involved before trading with real funds. Prompt and multilingual. Join massive IQ community. Create an account.
And start trading in your browser. Great support - shoutout to Alex : Only problem is that the risk exposure is not forthcoming.
First Name. Last Name. Try now. Welcome back! You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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