What are FX Options on the IQ option Platfrom?

What are FX options and how to trade foreign exchange options at IQ Option?

If you want to exchange one currency for another at a present exchange rate at the particular moment of time in future then FX Options contracts give you that right.

What are FX options at IQ Option

As we know, FX Options are of two main types. A call option that gives you the right to buy and put option that gives you the right to sell an asset.

Put and call options at IQ Option

How to trade FX options at IQ option?

As you can see from the below chart on the right-hand side of the menu you can specify the amount of your investment.

Choosing amount of investment

Here you can select the expiration time when the option contract ceases to exist by pressing the time button.

Selecting expiration time

Selecting strike price for FX options

Now it is time to select a strike price. It is a fixed price which owner of the option can buy, or sell, the underlying security or commodity and strike price are indicated in white and accompanied the chart.

Selecting strike price

You can see the profitability scale next to the strike prices. If you want to check the potential profit for the selected strike price you can check higher button for buy positions call options and lower button for sell position put options. The red scale will show you the loss and green will indicate your profit.

Reading profitability scale for call and put options

When you choose strike price manually you influence the size of the price band. Choose the direction of the price. If you think that your price will go up then click on higher and if you believe the price will go down, click on lower.

Selecting strike price manually

How to fix profit/loss before expiration time?

You can sell the option before time and can fix your profit or loss before the expiration time. In order to perform this press the sell button.

Closing an option before the expiration

Have a pleasant trading experience

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