FX Options on IQ Option – How to profit from this new trading product

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FX Options Tutorial and Brokers

The new FX Options from IQOption combine the best of both worlds – a derivative option with binary returns that trade like spot forex positions. Here we explain what an FX option is, how to trade them and which the best FX Options brokers are.

FX Options Brokers

IQ Option $10 91%* » Visit

ESMA Compliant

These options are compliant with the ESMA regulation and available to EU traders.

Like spot FX, your entry price for the FX-Option is the price of the underlying pair at the time of your purchase.

Unlike spot FX the options come with a limited lifespan, there is an expiry, and your profits are based on a system of strike prices.

How Do FX Options Work?

This is how they work. When you pull up a chart of the FX-Option you will see a series of strikes (strike prices) to the right of the price action.

You will choose one of those strikes and the direction of the trade, whether you think prices will rise or prices will fall.

If you buy a call and price rises you can make profits after you clear a spread up to and until one of two things happens:

Expiry

The first is expiry.

If the option expires there are two possible outcomes. If the asset closes above your strike your trade is automatically closed at a profit, whatever profit is showing. If the asset closes below your strike the entire trade is a loss.

The second thing that can happen is that you decide to close the trade – yes, close the trade!

Unlike binary options the FX-Options can be closed at any time so you can lock in whatever profits or losses you are showing before the option expires.

Strike Prices

The strike prices are also important because of leverage, the further out of the money your strike price is the higher the return you can expect to receive.

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The catch is that there is a window or spread to overcome that is tied to the amount of money you trade.

The break-even point is an amount equal to the amount you trade.

The deeper in the money your strike the easier it is to overcome but your profits will be smaller, the further out of the money your strike the harder it is to overcome but your profits will be larger.

Profit Bar

There is a tool to the side of the chart that shows how much profit or loss you can expect from a position at the time of expiry.

The gauge is a handy guide but can be confusing because it moves up and down with the value of your open positions and can show losses immediately after you purchase an option.

The thing to remember is that the gauge will change, and that if your option is above the strike price you will not lose the entire trade.

Limited Losses

Because you are buying contracts and not opening a spot position your losses will always be limited to the amount of money you trade.

This means that there are no short positions, if you are bullish you buy a call and if you are bearish you buy a put.

Expiry on these positions is usually about one hour but, again, that doesn’t really matter because you can buy or sell these options at any time, and even buy and sell the same option over and over again if it keeps making money.

Greeks

With the option having an expiry time, time decay becomes a factor for the pricing.

This can also be seen from the payout gauge. As an option gets nearer to expiry, the potential for price moves of a certain magnitude change. This can result in some very tempting payout percentages appearing as an option comes to close the closing.

Volatility and time decay are both in play when you trade FX Options.

IQ Option

Right now, these options are only available at IQ Option. The range of markets is limited to the 5 major forex pairs, and the expiries are set at 1 hour intervals.

As the popularity of the product grows, expect further markets to be added, and more expiry options – particularly end of day.

IQ OPTION Review 2020

Last updated: October 8th, 2020

Is IQ OPTION a scam OR one of the best trading platforms in the world ?

Table of Contents

Don’t sign up before you read this IQ OPTION review

Me and my colleague have performed a thorough IQ OPTION review, without the broker knowing it of course.

Here is our true experience!

  • Forex + FX Options + Binary Options+ Crypto
  • Min. deposit only $10
  • Large community of traders who interact
  • Very user friendly trading platform
  • Easy to use
  • Good customer support
  • Demo account free
  • Many local payment options for your country
  • Islamic account available
  • No VPS
  • No MT4/MT5
  • Slightly more expensive
  • Not accepting USA traders
  • No Bonuses

Broker’s Rating:

**Your capital might be at risk.

Details about this broker:

✅ Visit broker
✅ Name of company IQ OPTION
✅ Trading platforms + Forex Trading Platform
+ Binary Options Trading
+ Cryptocurrencies Trading
+ CFD on Stocks, Stock Indices
✅ Forex pairs available 22 currency pairs available !!
✅ Minimum first deposit $10
✅ Max. leverage 1000:1
30:1 for E.U. clients
✅ Languages available English, German, Espanol, French, Indonesian, Italian, Portuguese, Swedish, Thai, Chinesse .
✅ Max payout if winning for binary option trades 92%*

* max.payout in case of a winning trade ✅ Time frames to trade via binary options 30 Sec, 60 Sec, 2min, 5min ✅ Type of digital options Call/Put, Turbo ✅ 1-click trading YES ✅ Demo yes with virtual $10.000 ✅ How many instruments are available 78 (forex 22 pairs, stocks, commodities) ✅ Established 2020 ✅ Webinars / Education yes, slowly adding more and more ✅ Regulation yes regulated ✅ Account currency EURO, USD, GBP ✅ Payment methods Visa, Mastercard, Giropay, Sofort, Skrill, Neteller, Webmoney ✅ LiveChat Yes for real clients ✅ Customer support email / LiveChat (for VIP clients, direct telephone line) **Your capital might be at risk

IQ OPTION trading instruments

The investor initially has a choice of 79 trading instruments in the following categories: commodities

  1. foreign exchange (forex)
  2. binary options (not for EU citizens)
  3. forex options
  4. crypto currencies
  5. indices
  6. equities (stocks)

While gold is the only one commodity and only six different stock indices are offered, the selection for the other two categories is significantly larger.

Even if one or the other may find this selection too small, our experience has shown that the values ​​for the trade seem to have been carefully chosen. With the exception of indices, 24 hours a day trading is possible in all categories, with at least one asset from a specific sector being always available in the equities category. Thus, strategies that focus on a specific economic segment are very well possible.

**Your capital might be at risk.

1. FOREX TRADING

A quick glance at the foreign exchange offer: All combinations of the majors and some other currencies such as the New Zealand dollar, the Russian ruble or the Swiss franc can be traded here. There are a total of 22 pairs are available.

IQ OPTION offers you the opportunity to trade a total of 22 currency pairs. You have at your disposal not only the major currency pairs (EURUSD USDGBP, etc.) but also some smaller world currencies such as the New Zealand dollar, Russian ruble which can also be traded in combination with major currencies €, USD, British pounds etc.

2. BINARY OPTIONS

As the name of broker implies, IQ OPTION started as top notch binary options brand but has quickly turned into global trading brand (not only binary options but all kinds of trading instruments!

You can choose between two types of trading, as is the case with binary trading:

Put options and call options

Traders can use put options to speculate on falling prices, and use call options to bet on rising prices. Turbo options with particularly short expiration time frames with durations of 30 and 60 seconds are also available for trading, but due to the associated high risk, they are more suitable for more experienced traders.

Time Frames

The following time frames are available for binary options platform:

  • 30 seconds
  • 60 second
  • 2 minutes
  • 3 minutes
  • 4 minutes
  • 5 minutes1
  • 5 minutes
  • 30 minutes
  • 60 minut es
  • 24 hours
  • 7 days
  • 30 days

Particularly noteworthy is the fact that investors can also trade on the weekend when the regular trading venues are closed. For this, IQ Option offers OTC trading. This abbreviation stands for “over the counter” and means that trading takes place directly between the parties, ie between the broker and the investor, outside the regular stock exchange. Interesting are the regularly organized competitions in which traders can compete against other traders.

As of 2nd July 2020 ESMA European Union has forbidden the trading of Binary Options to retail traders who are European Union citizens.

3. FX Options from IQ OPTION

A brand new offering that was recently added into portfolio of trading instruments.

FX Options are basically a combination of real option trading and forex trading.

Why is it better than binary options ?

  • there is not anymore “0 or 1” OR “earn something or loose all” principle – meaning even in case you dont guess the trade right, you will not lose the whole amount you put at stake !
  • earning potential in case your assumption was right is unlimited
  • if you think the currency pair will go up in specified time frame then you do CALL OPTION and vice versa use PUT OPTION for declining market price
  • you will not lose more than you put at stake

4.CRYPTO CURRENCIES

Currently (beginning of 2020) there are totally 12 different cryptocurrencies that you can trade on IQ OPTION platform:

  • Bitcoin / Bitcoin CASH
  • Ripple
  • IOTA
  • Dash
  • ETHEREUM
  • ETHEREUM Classic
  • Monero
  • OmiseGo
  • Zcash
  • Santiment

We think they will add more and more cryptos over time, as new ones become popular. So far we think this choice is wide enough.

5. COMMODITIES

As the only commodity currently available, the precious metal gold can also be traded as a binary option.

6. Equities and Stock Indices

At the moment there are 49 Stocks available for trading.

Nowadays traders have up to 79 different asset classes available from commodities, forex, indices and stocks. The only commodity currently available is only GOLD and the stock indices are only six, the choice of stocks is much wider than the other two categories.
Stock indices are focused on London stock exchange index (FTSE 100), Frankfurt (DAX 30), Paris (CAC40) and New York (S&P500 / NASDAQ / Dow Jones). Besides many European and American stock titles, some Asian shares such as Toyota and Bank of China are available for trading. Overall we can say that the emphasis is put on stocks from banking and financial services, energy, the internet and telecom industry with which you can speculate.

You can trade via mobile Apps, webtrader or standalone platform.

Signup bonuses

Unfortunately, there are currently NO bonuses offered!

Regulation

IQ Option Europe Ltd. is registered at Cyprus, and is regulated by CySEC. IQ Option Ltd. is registered at Seychelles, this entity is not regulated.

How fund to your account

In addition to the two credit card variants VISA and MasterCard, IQ Option investors also have the option of using a number of internet payment services for deposits and withdrawals. The list of available providers includes Skrill, Neteller, Webmoney, and of course WireTransfer. These services handle payments very reliably. However, no detailed information is available on the fees charged when using IQ Option service for payment services. It is therefore advisable to contact customer service on this matter in order to clarify this. Because even the general terms and conditions help in this case only conditionally, as these currently, like many other contents, are only available in English. Here, from the customer’s point of view, there is still room for improvement. Incidentally, the minimum deposit that IQ Option requires from customers is relatively modest at just $10.

IQ OPTION demo

There is, of course, a demo account where you can practice your trading strategies without any risk using $10.000 virtual money. You can trade all types of assets completely stress free.

Quality of customer support

The conclusion of IQ OPTION review

“During this test we noticed that IQ OPTION platform and OVERALL services THEY OFFER are a step ahead compared to the competition! No wonder that they survived the big cleanup in binary options industry and now start to take their share in forex trading industry.”

Let us explain you why.

First of all, during our test, we noticed, that this brand puts really strong emphasis on trader’s education + on the quality and constant improvement of their trading software and last but not the least on the security of client’s funds.

Secondly, according to what we noticed, the client verification process is in line with the strictest regulation rules. In other words, IQ OPTION is one of few brokers out of all forex brokers that we tested, where you as a trader have the feeling that they want you to trade profitably and stay with them for long term, instead of just taking your money and run away (which is usually the case with many other brokers in this industry). That’s indeed a good signal for a new trader!

Last but not the least .. we think they have really knowledgeable customer support.

Similar as competition, IQ OPTION is available by phone, email, and live chat. In addition, there is also a mailing contact (a little old-fashioned but you never know when you will need it). Upon calling for customer service, a responsible client support person will either immediately pick up the line and and try to resolve your issue right away OR the system will create a so called “Problem Ticket Nbr.” where you report a problem, and employees will call you back later. This is a nice service to have, because it could perhaps save you a lot of money on your phone bills.

Broker contact details:

IQOPTION EUROPE LTD
Yiannis Nicolaides Business Center, Agiou Athanasiou Avenue 33, 4102, Agios Athanasios, Limassol, Cyprus
Phone +357 25 262 010
Email [email protected]
LiveChat Yes for clients

VIDEO tutorials

RISK DISCLAIMER:

Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. 76% of retail investor accounts lose money when trading CFDs with this provider. As a result, CFDs may not be suitable for all investors because it is possible to lose all of your invested capital.

1 COMMENT

Great info. Lucky me I found your website by chance (stumbleupon).

7 Binary Options

Marcio

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IQ Option will soon be furnished with yet another attractive FX Options feature. The new trading instrument will be yet another on the platform that will empower traders by combining all the advantages of Forex trading with the appeal associated with options trading.

It is expected to be a highly profitable hybrid. The other major news is that the newly created FX Options feature will be offered to EEA customers as well which will allow them to trade short-term forex.

The idea behind the new instrument is to make things simple on the trading platform, while at the same time giving control of the risk factor to the customer. So, they can set what is acceptable. You can watch the video for more details.

Advantages of FX Options:

  • Traders will benefit from an unlimited number of returns which mainly depends on the price of assets changing
  • If there is a loss investor will not end up losing all the capital invested. They will be able to choose the risk factor by defining what amount they want to trade
    and selecting a strike price. So, they can get the desired return when the asset expires
  • Trading will be more comfortable than with using CFDs since you don’t have to bother about leverage, pips, and margins, etc.

The way these payouts work is pretty simple. The customer defines the price at which they would be willing to exchange one currency for the next one. The payout will vary depending on the difference in price between each of the currencies. Also, the starting and end point of the currency value will be taken into consideration. So, the larger the price difference between the currencies the more significant will be your risk but so will be the payout if the odds are favorable.

The feature, in essence, gives the control over to customers who can then manage their risk. However, there are still risks which can’t be controlled like that of the market. Though being able to choose the risk level will help clients minimize their losses while maximizing gains.

At the moment FX Options is available in up to 14 currencies. The expiration times start from a minute and are right up to 5 minutes. The other good thing as mentioned above is that clients can’t lose more money than they invest.

As of late easymarkets has launched their easyTrade that uses a similar concept. Though we think that IQ Options’ implementation of the concept is much better and easier to use.

Open a Free IQ Option Demo Account by Clicking the Green Button Below

General Risk Warning:Binary options trading carries a high level of risk and can result in the loss of all your funds

Binary and digital options are prohibited in EEA

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. The financial products offered by the company carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.

Start trading now with our recommended Binary Options Brokers.

Start trading now with Binary Option Robot

IQoption Digital Options – how to trade, what they are?

Digital Options on IQoptions

IQ OPTION just introduced a Digital Options. We now know a little bit more about them:

We try to explain:

  • what are digital-options on iqoption?
  • how to trade digital-options
  • maybe we share some tips about trading on digital-options
  • difference between binary and digital options

So here are some main features of Digital Options on IQ Option:

  1. Higher profitability* — Up to 900%** of profit in case of sharp price movements in your favor*
  2. More flexibility — Sell the option at any point to secure profit
  3. Lower risk* — Varied strike price options allow for lower risk

*Compared to IQ OPTION regular Binary Options offering.
**Amount credited only in case of a successful prediction.

Here is a quick promo video of Digital Options.

How to start a digital option trade in only 5 steps:

  1. Select digital options in the main table.
  2. Choose an asset you would liketo trade
  3. Choose your prefered strike price
  4. Now open a Call or a Put option
  5. Confirm the trade you are about to make

Digital options

The main difference between Digital Options and Binary Options is the presence of strikes. Strike can be understood as the market entry point. For example, in binary options, a strike is always the price or position of the chart for the current moment, whereas in Digital Options you can choose the most profitable strike level yourself.

At any given time, you have 22 different strikes to choose from. Note that the number of strikes displayed on the platform may vary depending on the scale of the chart and the situation on the market. The yield in Digital Options is directly dependent on risks, so the maximum profit on this instrument is increased to 900%.

The ability to purchase multiple options for one expiration time, along with a lot of strikes, opens up a huge number of opportunities for the trader. As for example, with the help of digital options it is possible to open positions in advance. This allows you to enter the market with a clearly successful position, but with a smaller percentage of profit due to understated risks compared to conventional options.

In the digital options, the trader , as always, has the opportunity to sell his position before expiration ( but not later than 20 seconds before the end of the transaction ), and, depending on the current price, either receive profit or claim back some of the invested funds.

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