If you are interested in beginning the trading process, you should first choose a broker who can suit your specific requirements. This article will teach you all you need to know about IQ Option trading, including what type of broker it is, what kinds of assets are available, how to make a deal, and how to figure out how much money you will make from each trade. Continue reading to learn every important fundamental detail.
IQ Option: A complete explanation
The first thing to know about IQ Option is that it’s a broker, not a trading platform. It is possible to trade CFDs on stocks, forex, exchange-traded funds (ETFs), and commodities through IQ Option. We’ll go into more detail about each instrument’s unique features in the next sections.
Starting trading is possible using the Practice balance, which is offered without cost. With a starting balance of $20,000 and the ability to add more whenever you want, you’ll never run out of practice money with this account. In order to trade with real money, you’ll first need to practice with virtual money.
How to Trade on IQ Option: Trading CFD-style
It is vital to become familiar with CFD-style trading in order to comprehend how to trade on IQ Option. Trade in futures and options is referred to as CFD. Any asset bought under this agreement will be sold at a discount from its current value to its contract value, which is decided upon by both the buyer and seller upfront.
Trading CFDs is convenient since it enables investors to benefit from an asset’s price fluctuation without simply buying the item. It indicates that the asset’s current value is unnecessary and that the only thing that matters is the difference in price between when the trade was entered and when it was exciting.
Some investors may find this trading method useful if they want to trade valuable equities but lack the funds to make the acquisition themselves. For every successful prediction, a trader stands to gain; for every incorrect prediction, the trader stands to lose all of their invested assets.
Forex, which stands for “foreign exchange,” is a worldwide, decentralized industry for currency trading. The foreign exchange market seems to be the world’s biggest and most competitive marketplace, enabling traders to bet on the future rates of various currencies.
When it comes to Forex trading, currency pairs are always used, such as EUR/USD. If you look at this case in context, you will notice that the basic currency (EUR) is being converted in terms of units of a secondary currency (USD). For instance, if the EUR/USD exchange rate is 1.21, it indicates that one euro is comparable to 1.21 US dollars.
● Equities and commodities
STOCKS are an additional trading option offered on this platform. Investing in stocks is a popular activity for both novices and experienced people. There are more than 170 different stocks available, which come from various industries, such as the tech sector (Apple, Tesla, Microsoft, Amazon), the food industry (McDonald’s, Starbucks, Beyond Meat), banks, and the fashion industry, and more.
You may find commodities in the “Commodity markets” part of the asset menu, which includes Gold, Silver, Crude Oil WTI, as well as Crude Oil Brent.