IQ Option FX Options – Introduction

One of the ways online options platforms manage to attract new traders is by introducing new financial instruments.fx options Cryptocurrencies have been the hot instrument for several years now.

But with almost all platforms having them, the competition has evened out.

Until recently.

IQ Option has launched a new product that will make it easier for traders to make more profits on short term trades. Think about a trade where your return is unlimited and losses cannot exceed your invested amount. Think about a trade where you can exit limiting your losses or, locking in your profits.

Theses possibilities are now a reality thanks to the IQ Option FX Options financial instrument.

What is FX Options?

It’s a new instrument type that cleverly combines options with forex trading. Options allow you to predict whether an asset’s price will be higher or lower than a fixed price at trade expiry. If you predict correctly, you’ll make an agreed upon price.

If you predict wrongly, you’ll only lose the amount you invested in the trade. Now, rather than trade with any asset, FX Options only allows you to trade with 14 of the most popular currency pairs.

Getting started with IQ Option FX Options

iq optionThis financial instrument is available to all non-European traders on the IQ Option platform.
The broker is currently working on introducing the instrument to European traders.

Once it’s launched for EU traders, FX options will not be bound by ESMA regulations.

To start trading with this instrument, simply log in to your trading account. Click on the currency pair you want to trade with. On the drop-down list, click on ‘options’. Then in the list click on FX.
How to trade FX Options

Assuming you’ve already selected the fx currency pair you want to trade in. Follow these steps.
  1. Select the amount you want to invest in the trade.
  2. Select the expiration time. This can be anywhere between 1 minute and 5 minutes.
  3. Select the strike price. This is shown by a white box to the right of your chart. The strike price is simply the price at trade expiry. Your goal is to predict whether the FX price will be higher or lower than the strike price at trade expiry.
  4. Click on higher or lower depending on your prediction. Once you’ve done this, a red vertical line will appear on your chart. It indicates the trade expiry time. Once the price graph reaches this line, you’ll immediately know whether you’ve made a money or not.

Tip: If you hover above the higher or lower button, a profitability scale appears. This shows how much profit or loss you can expect.

iq option fx options

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The potential profit is indicated by green shading while the loss is indicated by red shading. Here’s where things get exciting. Profits can be higher than 300% while losses are limited to the amount you invested in your trade.

READ  How to use a trends based strategy with IQ Option. 
Advantages of FX Options

Although still relatively new, these instruments are distinctly different from the traditional binary options of fx assets you’ll normally trade with. Some of the advantages include the following.

Getting started in relatively easy

As long as you understand the simple concepts about trading fx, binary options and technical analysis, you’ll be able to comfortably trade with FX Options.

You don’t need to open a new IQ Option account if, you’re already trading on the platform. In addition, theseoption fx options instruments are accessible through desktop browsers or the IQ Option smartphone apps.

14 currency pairs included

Expert traders will usually focus on a few financial instruments. Why? It’s easier to follow their price trends and perform technical analysis on a handful of assets compared to hundreds.

FX currency pairs are also relatively easy to trade with compared to other assets like cryptocurrencies. Their price trends are easy to predict and, they’re relatively stable.

With 14 of the major currency pairs to choose from, traders have the chance to make more winning trades within relatively short amounts of time.

Designed for short term trading

The maximum expiry per trade is 5 minutes. Combine this with short term technical analysis and you can see the potential of making hefty profits within a short amount of time.

Expiry’s aren’t fixed either, you can set your trades to last anywhere between 1 minute and 5 minutes. There’s no need to worry about keeping track of a single trade for hours before it expires.

Unlimited profit potential and losses limited to amount invested

How about making over 100% on a single trade within 5 minutes? That’s what IQ Option FX Options offers. Most trades on the IQ Option platform have a maximum return of 92%.

FX Options goes a step further allowing you unlimited profit potential per successful trade. The profit potential per trade isn’t fixed as is the case with traditional FX and binary options trading.

Depending on the asset’s price change and trade expiry, you now have the chance of making well over 100% returns on single trades. What’s interesting though is that, the profit potential of a trade is shown right before you enter your trade.

New traders often worry about losing their entire account on single trades. FX Options losses are limited to the amount that you invested. But you don’t have to wait until your entire invested amount dwindles as a losing trade progresses. The next advantage explains this.

Exit trades before they expire

iq option fxSometimes, you might enter a trade by mistake. At other times, your predictions might not be correct. In both scenarios, chances of losing your invested amount are high. FX Options offers a solution allowing you to protect your money. Trade exit.

What you do is simply click on the ‘sell’ button that appears on the top of your screen when a trade is open. This will not only allow you to limit losses on a trade, it can also be used to protect profits earned if you expect the trend to reverse and enter a losing position.

Enter trades with as low as $1

Although this is a new asset type, IQ Option still allows you to enter trades with as little as $1. The minimum account deposit still remains $10.

READ  How to verify your IQ Option trading account 

This makes it easy to join the IQ Option platform and start trading profitably. The high returns offered also make it easy to build your account in a short amount of time – even if you start with a relatively small deposit.

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General Risk Warning! your capital may be at risk

Disadvantages of FX Options

There’s no doubt that FX Options is an innovative way for traders to make huge trade returns in a short amount of time. But as with any other financial instrument, it does have some downsides.

Only focused on FX currency pairs

This instrument allows you to trade on forex pairs only. This shuts out traders who prefer other assets like commodities and stocks. The currency pairs are also limited to 14 only. On the upside, learning to trade currency pairs is relatively easy due to their usually stable nature.

Currently available to non-EU traders

Although IQ Option is a CySEC regulated platform, their FX Options is currently only available to non-EU traders.iq option However, they’re working on making the asset available to European traders soon.

In addition, traders from some non-European countries like the US, Australia and Canada cannot trade on the platform due to regulatory restrictions. When the instrument becomes available to EU traders, it will not be bound by ESMA restrictions.

Focused on short term trades

Trades are limited to 5 minute expiry times. This favours day traders who prefer short term trades with high profit potential. Although the profit potential is high, losing a significant chunk of your account balance within a short amount of time becomes a risk you must keep in mind.

One way to avoid such losses is by first trading on your demo account. This way, you’ll be able to identify a few currency pairs to focus on and perform technical analysis without risking your own money. Once you’re successfully making money on your demo, you can now risk your money on a real account.

Should you trade FX Options?

If you’re already trading on the IQ Option platform, this new asset is worth trading in. The unlimited returns makes it a good option for traders who want to build their accounts fast. If you’ve been trading currency pairs or regular options, you should find getting started with FX Options relatively easy.

On the other hand, if you’re still new to options trading, this instrument might not suit you. The short term nature of trades increases the risk of losing money fast. It’s recommended that you first learn how to trade this asset before risking your money. This can be done through the demo account.

But what if you’re new to online options trading?

iq option reviewIt would help if you first register with IQ Option.

This online options broker is fully regulated by CySEC. This allows IQ Option to offer their services to traders from Europe, Asia and other parts of the globe.

As I mentioned before, the broker doesn’t accept traders from the USA, Canada, Australia, and Israel among other countries. It’s also EEA authorised.

This broker’s connection with these two organisations shows their dedication to offer transparency and build trust with their clients.

If you decide to trade with them, you’re assured that your money is safe and even if IQ Option collapses, there’s some way to recover your money.

READ  Trading On the IQ Option Platform Step By Step Guide

IQ Option is very trader friendly. The platform is built upon a unique algorithm that’s quite fast. It’s also accessible through different media including browsers, iOS and Android apps.

The trading interface is also trader friendly. You’ll find it easy to navigate with all the tabs and buttons strategically placed to make your trading experience enjoyable and simple.

Supporting over 10 different languages, the IA Option platform is accessible to people of different nationalities.

You can choose to open a demo account or a real account. The demo comes credited with $1000 virtual cash. Opening a real account requires a minimum of $10. The platform accepts several payment methods including bank transfer and some of the common e-wallets.

If you’re new to options trading, IQ Option provides a huge collection of learning resources to get you started. This includes tutorials (both written and video) that are accessible for free. If you have any questions, their friendly customer support team is always available to help.

Trade entry is also quite simple. It involves choosing the amount to invest ($1 to $5000), choosing the strike rate, setting the expiry time and placing a ‘call’ or ‘put’.

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The profit you stand to earn is displayed before you enter a trade. The platform also offers unlimited expiry times. These range from a few seconds for turbo options to several moths for standard options.

This makes the platform suitable for both day traders and long term traders. The platform also provides a vast array of technical indicators, tools and charts. These make it easier to monitor the price trends of particular assets and make correct predictions when getting into position.

IQ Option is one of the few online brokers I found to offer over 1 million different financial instruments. And with the new FX Options, you have a wide selection of assets to trade with. Their assets are drawn from different categories that include, FX currencies, stocks, commodities, indices and cryptocurrencies.

Generally, successful trades will earn an effective return of up to 92%. This is higher than the average effective return offered by most brokers. What I like is that they’ve topped this by offering unlimited returns through their FX Options financial instruments.

Withdrawals are processed within 24 hours if your account is already verified. You are allowed to withdraw to any of the accepted payment processors.

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Conclusion

IQ Option FX Options is a new financial instrument that will excite both new and experienced traders. In an industry where brokers are continuously offering lower returns to traders, IQ Option has made a bold step by offering unlimited returns on FX Options winning trades.

For traders with a background in FX and binary options trading, this should be an asset that’s easy to profit from. This however doesn’t mean that newbie traders cannot make money trading this instrument.

IQ Option offers several resources that will allow you to get started fast. These include a demo account and learning resources which can get you up and running within several days.

Overall, if you’re still wondering whether this instrument is for you, I hope this article gives you the nudge you needed to start trading FX Options.

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