In the world of FX trading brokers, the IQ option is one of the leading platforms. Since the people who want to have a satisfying and stable earning are leaning towards binary options more and more every day. Binary options have proven their worth to be an excellent method of profit. But still, it requires maximum effort to get the desired outcome.
However, binary options are fairly new in the market and not many people have a working knowledge of it, which is choosing the correct asset and forecasting the ups and downs of its price value. So, it’s totally okay to be a newbie and wanting to learn about trading forex on Iq option. In this article, I’ll let you know all the secrets and features there is to know before trading forex on Iq option. The tips given below will give you a great head start. And I hope that you’ll find them useful.
Analysis and Research of the Market
Before you start, it is necessary to select the assets that go most well with your understanding and which has predictable changes in price. And it will only be possible if you attentively monitor the news of the financial market for some week. That information will not only give you an idea of choosing assets suitable to your behavior and will shun your ability to forecast changes in price.
Choosing Right Expiration Time for an Option
The investor in the binary option is free to choose a time to create his forecast, whether it be an hour or a month. So, while exercising this option the trader is subscribed in “short-time trading” by default and can take advantage of quick profits – this option is mostly recommended to new amateur traders, not that it doesn’t come with any risk. But this kind of trading serves the purpose of developing an intuition for future trades, experience, and the first invaluable income.
Focus on Accuracy More
You need to emphasize precision more than you do on profit, waiting for the seller to be comfortable with the binary options using large sums is not advisable.
Establish Your Strategy
Most people tend to increase their rate after a loss, in the hope of compensating their lost profits. But this is not recommended, on the contrary, you should decrease rates after loss and only consider an increase in rate after winning. IQ options suggest several popular tactics, some of them are listed below,
- Hedging: This strategy aims is to reduce losses and also effective reductions of risks. Catch the “cell” course for the advantage of a benefit. It indicates buying or selling two or more options to balance the positions. Keeping a gap between them is important so that the course reading doesn’t leave the selected corridor.
- Scalping: A known strategy for turbo options, which is based on the reaction of the trader along with the information shown on the chart.
The game plan is to initiate a sharp increase in the current rate also to increase it with a sharp decline in the indicators of the exchange rate. And just like it sounds – it has its own risks, so before applying this you need to pay attention to the degree of changes. For example, for the strategy to work, a stable course before the jump will help a lot.
- Trend Trading Strategy: Fundamental analysis of the obtained data is the key to this strategy. Since the value of the assets are not permanent but changes depending on time and the influences on the indicators and certain facts and circumstances. Basing on the political and economic situation of the country, the rates of currency pair varies. And a company’s equity assets’ value is proportionate to its profit of a certain period or other factors.
For example, a profit from the short-run can induce value loss of certain assets after some time. Then turn the game in the opposite direction by increasing the value. Though we still suggest using its standard options where you have enough expiration time in hand.
- Rollback Trading Strategy: Similar to the Trend Trading Strategy, this one also uses data analysis. It is a method that combines two strategies to formulate a more effective one – trend trading strategy and scalping. To extract desired profit by this strategy, read the movements precisely of the assets you have chosen. Traditionally, this strategy is mainly used in trading on the standard “fifteen-minute” option.
How to Switch from IQ Options to Forex?
To shift from IQ options to forex and start trading on forex go to the terminal and click on the upper left corner, from the dropdown menu choose “Forex”. To enter into transactions, set the value of the bet and put the multiplier on the left side of the terminal. Since the magnitude of profit depends on the multiplier, it is also a very risky business so do it wisely. On the chart, you’ll see all the deals that have been concluded. Hedging is not restricted, so if you choose multidirectional transactions, they won’t be summarized but displayed on the chart in detail.
The total profit is displayed on the top of the terminal in percentage and the currency will be the same as deposited. The separate net profit for each transaction will be shown at each chart’s conclusion. To close all deals at once, click on the corresponding upper right button, or by clicking profit percentage and confirming closure you can close the deals one by one.
Unlike IQ options, forex uses the average price between the bid and the ask. Their values are displayed in the lower-left corner of the terminal. To set a stop loss, so the transaction automatically closes upon reaching its level, see the information on the brokers’ side. It will work even if you disconnect the terminal. Note that, trading forex on Iq option can be very risky – depending on the multiplier you choose profit can go 1000% upon price changing even 1%, though it is not available on all assets.
The major advantage of forex trading in IQ option is that you can adjust the ratio of risk and profit. And the benefits of “stop-loss” and “take-profit” offers, save your time and investment both. So don’t get too caught up in the risks, try new opportunities on IQ options and learn.