How to Trade Binary Options in IQ Option
By IQ Option
IQ Option is an online broker offering financial instruments like forex pairs, binary and digital options, cryptocurrencies, commodities, ETFs, indices, and stocks. It’s also one of the best-known names for options trading in the world and the most wanted platform. If you ask a trader where he trades, you will probably listen: I trade Binary Options with IQ Option.
An asset is a financial instrument used for trading. All trades are based on the price dynamic of a chosen asset.
What is an asset?
To choose an asset you want to trade on, follow these steps:
1. Click on the asset section in the top of the platform to see what assets are available.
2. You can trade on multiple assets at once. Click on the “+” button right from the asset section. The asset you choose will add up.
1. Select an asset. The percentage next to the asset determines its profitability. The higher the percentage – the higher your profit in case of success.
How to Trade Binary Options?
Example. If a $10 trade with a profitability of 80% closes with a positive outcome, $18 will be credited to your balance. $10 is your investment, and $8 is a profit.
Some asset’s profitability may vary depending on the expiration time of a trade and throughout the day depending on the market situation.
All trades close with the profitability that was indicated when they were opened.
2. Choose an Expiration Time.
The expiration period is the time after which the trade will be considered completed (closed) and the result is automatically summed up.
When concluding a trade with binary options, you independently determine the time of execution of the transaction.
3. Set the amount you’re going to invest.
The minimum amount for a trade is $1, the maximum – $20,000, or an equivalent in your account currency. We recommend you start with small trades to test the market and get comfortable.
4. Analyze the price movement on the chart and make your forecast.
Choose Higher (Green) or Lower (Red) options depending on your forecast. If you expect the price to go up, press "Higher" and if you think the price to go down, press "Lower"
5. Wait for the trade to close to find out whether your forecast was correct. If it was, the amount of your investment plus the profit from the asset would be added to your balance. In case of a tie – when the opening price equals the closing price – only the initial investment would be returned to your balance. If your forecast was incorrect – the investment would not be returned.
You can monitor the Progress of your Order under The Trades
The chart shows two lines marking points in time. The purchase time is the white dotted line. After this time, you cant buy an option for the selected expiration time. The expiration time is shown by the solid red line. When the transaction crosses this line, it closes automatically and you take either a profit or a loss for the result. You can choose any available expiration time. If you have not opened a deal yet, both white and red lines will be moving together to the right to mark the purchase deadline for the chosen expiration time.
How to use Charts, Indicators, Widgets, Maket AnalysisCharts
IQ Option trading platform allows you to make all your presets right on the chart. You can specify order details in the box on the right-side panel, apply indicators, and play with settings without losing the sight of the price action.
Want to trade multiple options at a time? You can run up to 9 charts and configure their types: line, candles, bars, or Heikin-ashi. For bar and candle charts, you can set up the time frames from 5 seconds up to 1 month from the bottom left corner of the screen.
For in-depth chart analysis, use indicators and widgets. Those include momentum, trend, volatility, moving averages, volume, popular, and others. IQ Option has a fine collection of the most-used and essential indicators, from XX to XX, over XX indicators in total.
If you apply multiple indicators, feel free to create and save the templates to use them later
Widgets can help your decision-making big time. On the platform, you can use widgets like traders’ sentiment, high and low values, trades of other people, news, and volume. They will help you monitor changes in real-time.
No matter if you trade options, Forex, stocks, metals, or cryptos, knowing what’s going on with the world economy is essential. At IQ Option, you can follow up on the news in the Market Analysis section without leaving the Traderoom. Smart news aggregator will tell you what assets are the most volatile right now, and themed calendars will give you an idea of when is the best moment to take action.
Frequently Asked Questions (FAQ)
The best trading time depends on your trading strategy and a few other factors. We recommend that you pay attention to the market schedules, since the overlap of the American and European trading sessions makes prices more dynamic in currency pairs such as EUR/USD. You should also follow market news that might affect the movement of your chosen asset. Its better not to trade when prices are highly dynamic for inexperienced traders who dont follow the news and dont understand why the price is fluctuating.
What is the best time to choose for trading?
We dont restrict the number of options you can buy for an expiration or an asset. The only limitation is in the exposure limit: if traders have already invested a large amount in the asset you have selected, the amount you invest is limited by this exposure limit. If you are working in an account with real funds, you can view the investment limit for each of the options on the chart. Click on the box where you enter the amount.
How many options can I buy per expiration?
We want trading to be available to everyone. The minimum investment amount for today trading conditions can be found on the Company’s trading platform/website.
What is the minimum price of an option?
As soon as you buy a Put or Call option, three numbers appear on the right top side of the chart:
What are the profit after sale and the expected profit?
Total investment: how much you have invested into a deal
Expected Profit: possible result of the transaction if the chart point at the expiration line ends up at the same place where it is now.
Profit after Sale: If it is red, it shows you how much of the invested amount you will lose your balance after sale. If it is green, it shows you how much profit you will get after sale.
Expected Profit and Profit after Sale are dynamic, as they change depending on several factors including current market situation, how close the expiration time is and the current price of the asset.
Many traders sell when they arent sure that the transaction will give them a profit. The selling system gives you the chance to minimize losses on doubtful options.
For All-or-Nothing options the Sell button is available from 30 minutes until expiration to 2 minutes until expiration.
Why is Sell button (prescheduled option closing) inactive?
If you trade Digital Options, Sell button is always available.
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