You will find a high number of trading instruments in the IQ Option trading platform and that many of options can be confusing to novice traders because they don’t see the differences.
As soon as you discover the basic principle of each of them, the whole process of trading becomes much easier for you.
One very basic feature that you should know about trading instruments is the presence (or absence) of expiration time. In this article, we take a look at the differences between trading with and without expiration time. Let’s go!
Trades with Expiration
You can find the expiration time on the IQ Option’s FX Options. Which is IQ Option’s own developed financial instrument. The expiration time is the time between purchasing the option contract and its closing time. The expiration time varies, with the FX Option featuring a 1 hour expiration time.
The principle behind time-bound trading is to allow for shorter waiting times for trades and collect a payout percentage based on the investment amount. You will also find the strike price (what is strike price?) which sets the results of the deal. If the trade comes with a longer expiration time, it means that there’s a big chance that the asset will meet the strike price or even exceed this limit. To trade, just select the amount, your strike price, and the direction of the price whether it will go up or down. There is no Stop Loss feature here which means that your deal will close at the appointed expiration.
Another interesting feature that you can use in IQ Option platform is the buyback feature. This will allow you to end the deal before the appointed expiration time. This is helpful for traders who don’t want to wait for the expiration. Note the ‘Sell’ button with profit numbers listed beside it.
Another important term you should know is your ‘expected profit’ which is the result of the deal after the expiration. You should also note the ‘profit after-sale’ which refers to the result of your deal if you use the ‘Sell’ button. If you click ‘Sell’, it will permanently close the transaction.
Trades Without Expiration
Some of the popular assets that you can trade without expiration on IQ Option platform are CFDs, forex, stocks, Indices, crypto, ETFs, and commodities. To participate in a trade, you need to choose the amount you are willing to invest, leverage, set the Take Profit and Stop Loss and identify the movement of the price.
You have the option to leave the deal open for a certain period of time based on your trading strategy. You can also look for the current loss or profit on your screen or close the trade using button ‘Close’.
In these types of trading instruments, you can’t expect fixed payouts. In short, the payout that you will receive will depend on the asset price, multiplier, and investment amount.
There are a number of differences between trading with expiration and without expiration. Each type of trade has its own set of benefits so choose which will fit your trading lifestyle.
Start trading with IQ Option today