Fx Option is the latest instrument that you can trade using IQ Option Forex Broker, the leader in Global online trading. It is actually a combination of both forex and options where you can make predictions for short time frameworks.
The potential yield from successful trade is almost unlimited as you get the opportunity to choose from the wide range of strike prices.
Even if your prediction is wrong, the maximum loss will be less than 100% of your investment amount of that trade.
You can open a position with 1 minute to 5 minutes ( higher the better )
You can close the trade before maturity of the FX Option trade
Currently you can trade FX Options using 14 currency pairs
The awesome thing is that losses will never exceed the principle amount you invested for the trade ( If you invest $5 for a trade and if the trade is unsuccessful, you will loose less than $5 )
All kinds of trading involves higher profits and higher risk at the same time. So invest only what you can afford to risk.
How to trade FX Options ? will be something that you will be thinking about now. If you are still not registered with Options, register free using below link first as you need a trading broker and a trading software to place trades.
RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK
Then start trading using demo account. Once successful in demo account, you can start live trading ( You can fund the account using Skrill e wallet) ! You can view the below video and description to learn about the process in entering a FX Option Trade.
Once you login to trading platform ( web trader, desktop platform or android platform ) You can choose " Fx Options " from the intrument list and then choose a currency pair ( currently 14 currency pairs available ).
Then choose an expiry time and an amount from right hand side. Then you will see some horizontal lines with some prices marked on them ( you can see the profitability rate on right side next to those values as well ). These are called strike prices . It will be the deciding line between your success and failure of a trade. Try to choose a line close to current price as chances of reaching highest and lowest prices are very low. So choose a line after your analysis. Choose "higher", if you assume the price will be above that chosen line after expiry time. Choose "lower", if you assume the price will be below that chosen line after expiry time. You can use "sell" button ( that appears on top right after placing an order ) to close a trade before expiry time too.
Also read What are Forex Money Management methods article to help you in reducing losses and increasing potential gains. You can refer FX Options in Sinhala to learn about it ( offered by IQ Option Forex Broker ).
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 ( * CFD’s : Stocks, Commodities, Currency Pairs, Cryptocurrencies)
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