A few months ago IQ Option introduced a replacement instrument binary options in the European Union. The product was named "FX Options" which is associated with a mix of binary options as well Forex. And so it is. in this article, I will show you how the instrument works and how it can potentially be used for trading. It should be emphasized that this instrument differs depending on whether you live in a country covered by ESMA or not.

How does FX Options work?

To select the FX Options category, press the "+" button at the top of the platform, then go to the dedicated FX Options tab and select the asset you are interested in. I recommend that you choose the currency pair that has the lowest volatility (around 0%) because the spread will be the smallest on this pair. It should be emphasized that during economic events the spread can widen very much, so you have to keep this in mind and check the economic calendar regularly.

The FX Options operation reminds you binary options i Forex in one. We have an expiration time and refunds are not imposed in advance and there is no upper income limit. If we are lucky, we can earn up to several thousand percent on one transaction. Of course, this happens very rarely so you should not expect regular returns at such a high level.

The above screen shows an example of a move that allowed you to earn over 100% pure profit in a few minutes. By default, the expiry time is at least 1 hour, but in practice the broker uses different expiry times for different assets so it won't be a problem to find a currency pair that will expire in 3 minutes, for example.

FX Options configuration

Setting up a position is very easy. Just from the menu on the right choose: expiry time, investment amount (at least 30USD), and then choose the direction in which we expect the price to go. At the very bottom of the menu we see a list of assets that will expire soon. You can open a position on them with an expiry time of less than one hour so I think that fast trading fans will be happy.

Right next to the menu with settings you can see the profit range. If we play for growth and the price reaches the level of + 241%, that's what we will earn. In a place where no profits are shown is spread. That is, in this zone we do not earn money, we only make up for the loss. It should be remembered that every position we open is immediately at a loss and must earn enough to make a profit. That is why it is important to play on currency pairs with a low spread.

Summation

Pros:

• No possibility of falling into a negative balance
• The possibility of quick profit
• The ability to open positions with an expiry time of several minutes

Minuses:

• High entry amount (30 USD)
• Sometimes an absurdly high spread

I admit that I was expecting something completely different, but it turns out that the broker in a very interesting way circumvented ESMA regulations. I will definitely play with this instrument for some time, so if you are interested in developing this series, please let me know in the comment below.