All the IQ Option instruments explained


7 min read

When you work with IQ Option, you get access to a wide variety of trading instruments. For newcomers, the abundance of options can be intimidating. That is why we have repaired this article so you can see the complete list of instruments that are currently available on the platform.

As one of the most important investors of the 20th century said, do not invest in what you do not understand. Hopefully, by understanding the instruments better, you will be able to operate better with them.

Options

The options come in three types: binary, digital and FX options. All instruments use currency pairs as the underlying asset. When operating with the digital options, you will have to choose the strike price (a special limit that the share price has to cross). FX options work slightly differently. Automatically calculate the profit / loss of the operation based on the distance between the current price and the target price. As always when operating, the greater the risk, the greater the potential return. However, because of the requirements of the ESMA, binary and digital options are only available for use by clients categorized as professionals.

Stock CFDs

Contracts for difference of values, use the values ​​as an underlying asset (although still it is not the same as operating with the securities themselves). CFDs do not only behave differently from how currency pairs compare, they also operate with them very differently. When working with securities on the IQ Option platform, there are no strike prices or expirations. All you have to do is buy the asset of your choice and wait for its price to rise (or lower in case you are selling short), and then close the transaction manually. The trader can choose the multiplier and adjust the risk / return ratio according to his needs.

Forex

The forex is the most popular trading instrument in the world, and for good reason. It is simple enough for anyone to enter it and still offers a depth and attractiveness without equal. When working with Forex, traders buy and sell currency pairs that fluctuate according to technical and fundamental factors. To be able to trade with Forex in IQ Option, you will need to choose the currency pair, then click on 'Buy' or 'Sell' depending on your forecast and close the transaction when the time is right.

Cryptocurrencies

Cryptocurrencies have lost a huge portion of their attractiveness since the unstoppable period of growth that they experienced at the end of 2017. Even so, those who understand Bitcoin and its younger colleagues, definitely have the opportunity to operate successfully. Cryptocurrencies and fiduciary money have little in common and still operate with them in the same way. You can follow the same steps when operating, say, with a conventional currency pair.

Keep in mind that certain assets have a pre-activated multiplier that will greatly increase both profit and potential losses.

CFDs of ETFs, Commodities, Indexes

All three, despite having a drastically different nature, fall into the same category due to the fact that they operate with them in a similar way. The fundamental factors play an important role with all three. The profits / losses of these operations depend on the difference between the price of the asset at opening and the current price.

As you can see, all the assets available in the IQ Option platform fall into one of the two main categories. Those that use expiration times and strike prices, and those that do not. The first ones close automatically when they expire. The result of the operation will depend on the mutual disposition of the strike price and the current price. The others, need to be closed manually. For all assets that do not expire, a self-closing feature is also available. More on this here.

Negotiate now

Any reference to movements or historical price levels is informative and is based on external analysis and we do not guarantee that such movements or levels can happen again in the future

DISCLOSURE OF RISKS

Product difficult to understand, the CNMV has determined that it is not suitable for small investors, due to the complexity and high risk involved.



Source: IQOption blog (blog.iqoption.com)

Please note that by trading financial instruments you are risking of loosing capital. It should be used by professional traders.

General Risk Warning: The financial services provided by this website 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.