How to trade FX Options with IQ Option
1# STEP – Visit page https://iqoption.com/lp/ultimate-trading/en/fx/ (83% of retail CFD accounts lose money.)
2# STEP – Click the button – “Open your free demo account”
3# STEP – Fill in your email and password and click create an account
4# STEP – Congratulations, your account has been created. Now you can trade either with imaginary or real funds
The principle of trading FX options is very easy. First, you select a currency pair which you want to trade, your investment amount and an expiration time. Then you click on a strike price, this bar is located on the right side of the screen. Right next to the strike price bar is also situated a bar indicating how much profit you can make from the investment. After choosing your strike price you basically only decide whether the price of the asset will be higher or lower at the time of expiration.
FX Options in practice
FX Options – features
IQ Option now features 31 forex options that include forex pairs, indices and commodities (gold, silver, crude oil). If a trader chooses to get out of the position before the expiration date, he can prematurely close the trade to fix his profit or loss. FX Options do not fall under ESMA restrictions so they are unlike binary options available to EU traders. A great thing about this type of financial product is that the risk and potential profit of your investment is entirely in your hands and depends on the strike price and direction you chose.
IQ Option’s FX Options – FAQ
FX Options are a new trading instrument on the IQ Option platform that is exclusively available to EU clients. FX Options are a combination of Binary options and Forex.
To trade FX Options, you can follow our simple step by step guide in this article.
- First, you select your strike price. Notice how your potential profit changes when clicking a different strike price level.
- Second, enter the amount you want to invest in the trade
- Now decide whether the price is going to be higher or lower than is the selected strike price when the trade expires. If you think it’s going to be higher, choose "higher", if the opposite, choose "lower".
- Double-check all your trade settings and click higher or lower if you wish to open the trade.
The expiration date differs for each forex option. IQ Option features FX Options that expiry from 3 minutes to a 1 hour or so. The expiration time of your asset can be viewed when selecting a new asset. Click the plus symbol, choose FX Options and have a look at the middle column „Next expiration“.
83% of retail CFD accounts lose money