HOW TO TRADE FX OPTIONS WITH IQ OPTION - REVIEW AND WALKTHROUGH
- +25 FX Options available, covering currency pairsxf
- Uncapped profitability (for successful trades)
- Expiry time every 1 hour
- Choose between different strike prices
- Profit from rising or falling markets (in the case of winning trades)
- Enjoy IQ Option’s trading apps, technical indicators, and widgets
RETAIL EU TRADERS CAN NOW TRADE FX OPTIONS, WHICH IS A GREAT ALTERNATIVE TO BINARY OPTIONS.
European retail traders will be pleased to know that IQ Option now offers a new trading instrument - FX options. Retail traders from the European Union do not have access to some instruments anymore due to ESMA (European Securities and Markets Authority) regulation, but they are now able to trade the FX options offered by IQ Option. So let’s take a look at FX options...
More About IQ Option’s FX Options
IQ Option’s FX options gives a choice of over 25 FX Options, covering currency pairs. FX Options can be traded with 60-minutes expiry time. However, because trades can be entered late, a trade’s actual expiry time may be less than the times mentioned above. For example, a 60-minute FX option contract can be entered more than 59 minutes late, which means that you can actually enter a trade which expires in less than 1 minute. Likewise, if you entered 45 minutes late on a 60-minute FX option contract, your actual expiry time would be 15 minutes from the moment you entered the trade.
Positions taken on FX option contracts can be closed prematurely (before the expiration time) and have virtually unlimited profit potential (for successful deals). Also, in the case of out-of-the-money trades, the amount which is lost can in some cases be less than 100% of the investment amount.
FX Options - All Details Explained
With FX options, traders can choose between a number of different strike prices which are available at that particular time.
AN EXAMPLE OF AN FX OPTION ON THE EUR/USD WITH DIFFERENT STRIKE PRICES TO CHOOSE FROM.
Risk to Reward Ratio
FX options have the advantage of much more flexibility comparing to IQ Option´s non-EU trading instruments when it comes to risk to reward ratios. On each individual FX options contract, traders cannot lose more than the amount they invest. However, because they can choose the strike price, they have the ability to alter the risk to reward ratio. So instead of being limited to a maximum payout of, for example, 90%, they can achieve gains which are basically unlimited.
Contract Duration / Expiration Times
FX Options are expiring every hour. So, with FX options, you don’t have access to the ‘end of the day’ and ‘end of the month’ expiries like you have with other trading instruments.
Trading Availability Throughout the Week
FX options can be traded 5 days a week, they are not available over weekends.
Currency Pairs / Instruments Available
More than 25 FX options are currently available on the IQ Option Platform, covering currency pairs. The number of instruments available in FX options can change at any time, and IQ Option will probably add even more instruments to the group of FX options soon.
As mentioned earlier, retail traders from the European Union are not able to trade some popular trading instruments with IQ Option due to ESMA (European Securities and Markets Authority) regulations. On the other hand, retail EU traders are able to trade IQ Option’s FX options which comply with ESMA’s regulations.
With FX options, IQ Option has made a way for retail EU traders to trade a type of options contract that replaces these instruments that were previously available to them!
Different Platforms for Trading FX Options
CAUGHT IN ACTION: AN OPEN FX OPTION TRADE ON THE EUR/USD EXECUTED ON IQ OPTION’S MOBILE APP.
Retail EU traders who fancy FX options can trade it via IQ Option’s web, desktop, Android, and iOS platforms.
IQ Option Platform / Account Features
Fully Functional Demo Account (Free)
IQ Option’s demo or practice account is really worth mentioning. It has all the features of a real money account and does not expire like many other demo accounts. With this demo account, traders can practice with $10,000 virtual money and acquaint themselves with the markets and trading instruments before trading with real money. This account can be topped up to the original value of $10,000 at any time, which is a pretty convenient feature. Traders can also switch between their real and demo accounts without even leaving the trading platform. Don’t forget that IQ Option’s demo account is yours to use free of charge!
Low Minimum Deposit and Minimum Investment Amount
With a deposit of only $50, clients can access a real money account with IQ Option and start trading certain instruments like forex pairs, stocks, and commodities with an investment amount of only $1. FX options require a minimum investment amount of 25 euro or $30, however.
Indicators, Graphical Tools, and Widgets
IQ Option’s trading platform is equipped with all the tools you may need:
- Technical indicators - Moving averages, oscillators, ATR, Ichimoku Cloud, Fractal, and many more.
- Different chart types - Line charts, candlestick charts, bar charts, and Heikin-Ashi.
- Graphical tools - Different lines including Fibonacci.
- Widgets - See the following widgets right on your charts: ‘Traders’ Mood’, ‘High and Low Values’, ‘Other Traders’ Deals’, ‘Volume’, and ‘News’.
IQ Option clients can easily contact its support team via the ‘Chats and Support’ tab on the left side of the trading platform. At the bottom left of the platform you will also see a telephone number that you can call 24/7. The chat feature is also available at any time of the day and week. Customer support is available in 13 languages.
On the trading platform itself, traders can access video tutorials for free. These videos cover different subjects, which include information on FX options, binary options, digital options, different chart patterns, how to use different technical indicators, CFD trading, and the Crypto Digest.
Good luck trading!