How to Invest in IQ Options

If you want to start trading, the first step is to choose a broker who fulfills your requirements. This article will teach you all you need to know about trading on IQ Option, including what kind of broker it is, what instruments are available, how to open a trade, and how to compute profits. Continue reading to learn all of the essential fundamentals.

What exactly is IQ Option？

First and foremost, it is critical to understand what kind of broker IQ Option is. IQ Option is a broker that provides Binary and Digital options, as well as CFD trading on stocks, forex, ETFs, and commodities. Each instrument has its own quirks, which we shall go through in further depth.

You can begin trading on the Practice balance, which is given free of charge. It has $10,000 in practice money and can be filled up as many times as needed, ensuring that you never run out of practice money. When you are confident in your trading abilities, you can make a deposit and switch to the Real balance to trade with your real money.

The minimum deposit to IQ Option is $10, and the minimum investment in a contract is $1, making it accessible to the majority of traders. Let's take a deeper look at all of the options available on this platform.

Optional Binary Codes

Binary Options are one of the most popular trading instruments. This instrument allows you to forecast the asset's value, predicting whether it will rise or fall within the specified time frame. In the event of a correct forecast, the trader earns profit based on the profitability declared at the time of entrance. If the prediction is incorrect, the trader will lose the amount invested.

Binary options allow you profits of up to 100% and have varying expiration durations according on what is currently available on the marketplace. While the binary trading idea is relatively easy, this instrument is dangerous. If you want to understand more about it, check out our post on binary options trading.

Digital Alternatives

Digital Options, like Binary Options, operate on a “yes or no” basis. A trader obtains his or her profit if he or she correctly predicts the price direction. If the prediction is incorrect, the transaction is a loss. However, there is one distinction between digital trading and traditional trading: the strike price.

The strike is the price that the trader predicts the asset will reach by the end of the expiration period. If the strike price is met, the agreement is regarded profitable; however, if the strike price is not met, the contract is considered unprofitable.

Digital options allow for up to 900 percent profitability and are particularly interesting because they allow you to not only predict the direction, but also an estimate of how much the price might move. If you are a beginner who wants to learn how to trade on IQ Option, this instrument may be of interest to you.

Trading on IQ Option: CFD-style trading

To understand how to trade on IQ Option, you must first learn about CFD trading. CFD is an abbreviation for contract for difference. It is a contract between the buyer and the seller that states that the buyer must pay the seller the difference between the asset's current price and its value at the time of the transaction.

The benefit of CFD trading is that it allows traders to profit from changes in the price of an asset without having to own it. This means that the asset's real price is unimportant; only the difference between trade entry and exit is significant.

This form of trading may be suitable for those who want to trade valuable stocks but lack the funds to do so. In the event of a correct prediction, a trader will benefit from the price difference; in the event of an incorrect prediction, the trader may lose the invested cash.

Forex

Forex, which stands for “foreign exchange,” is a global decentralized market for currency trading. It is the world's largest and most liquid market, and it allows traders to speculate on currency exchange rates.

The most basic thing to understand about Forex is that it is always traded in currency pairs, such as EUR/USD. It indicates that the price of the first (base) currency, in this case EUR, is computed in terms of the price of the second (quote) currency, USD. For instance, if the EUR/USD rate is 1.21, it means that one euro costs 1.21 US dollars.

To trade Forex on the IQ Option platform, simply select it from the list of instruments and enter the necessary information, including the investment amount, leverage, and stop loss and take profit levels. Check out our whole Forex guide if you want to learn more about trading Forex.

Commodities and stocks

Stocks are another product available for trading on the platform. Stock trading is immensely popular among both novice and experienced investors. Over 170 different stocks of various firms are available, including the tech sector (Apple, Tesla, Microsoft, Amazon), food stocks (McDonald's, Starbucks, Beyond Meat), banks, cosmetics, and many more.

Commodities include gold, silver, WTI crude oil, and Brent crude oil, and may be found under the asset menu's “Commodities” section

ETF

An ETF (exchange-traded fund) is a sort of trading instrument that combines a group of securities (stocks, commodities, currencies, and so on) and frequently tracks an underlying index. S&P 500 ETF, for example, tracks the well-known S&P 500 Index. ETFs are traded in the same way as stocks, but they provide more diversification because they contain both risky and safe assets.

Crypto

Last but not least, Cryptocurrencies may be found in your trading room. You can trade conventional crypto assets as well as those with a multiplier and an expiration date, such as Bitcoin x100, Ethereum x50, and so on.

While ordinary Crypto assets are traded in the same way that stocks are: you may open a transaction and keep it open for as long as you want, Crypto with a multiplier has an expiration time after which the deal is automatically closed.

To properly grasp how to trade on IQ Option, you must also know how to calculate your gains. The identical profit (or loss) algorithm is applied for all CFD-based assets. The formulae are detailed on the IQ Option website and are used by experienced traders to forecast their profits. Continue reading to see two instances of trades and how their profits are computed.

Where do I begin？

To begin trading on IQ Option, go to the website or simply download the app to your phone. Create an account and begin with a practice balance until you are confident enough to switch to a real account. You can experiment with each of the tools listed above to see which one best meets your needs. Best wishes!