IQ Option how it works

Online work on the Internet in the financial markets or trading today is considered by many users as a promising and highly profitable method of generating income. You get independence and real conditions for good earnings on the Internet.

What are IQ Options? 

IQ Option is a trading platform with versatile software that meets the needs of all traders. The platform is easy for beginners and experienced users alike, and you don't have to spend a lot of time getting to grips with it.

The platform offers online CFD (Contract for Difference) and cryptocurrencies  trading. This is a contract that allows one of the parties, the seller or the buyer, to profit from fluctuations in the price of an asset. The CFD trading platform is a suitable option for new users to buy/sell a wide range of financial assets.

You don't have to buy the asset itself. You make money on price movements. Try it right now!

The CFD platform offers various financial instruments to meet the needs of traders from different regions: 

• Cryptocurrencies
• Stock
• Currency pairs
• ETFs
• Indices
• Options

IQ Option how it works? 

CFDs are a sophisticated financial instrument that is quite popular in most countries of the world.

Benefits of trading CFDs:

• Higher leverage. Unlike traditional trading, CFDs are more leveraged and subject to regulation. The leverage can be up to 1:500.
• Access to the world market. The IQ Option platform provides access to all major global markets with 24/7 activity.
• CFD instruments allow short positions to be opened at any time without borrowing costs as traders do not own the assets.
• There are no daily trading requirements. The CFD market is unlimited, so account holders can day trade as they wish.
• Variety of trading opportunities.
• The ability to earn money both by rising and falling prices.

Disadvantages of CFD trading:

• Risks. CFD trading is volatile and requires careful monitoring. In general, leverage exposure exposes you to more potential profits as well as more potential losses.
• Spreads and commissions. The spread on the trading platform is not fixed and constantly changes depending on the volatility of the traded asset.

The platform has excellent features due to its unique software and interface. Therefore, the list of basic requirements includes the most important properties that a new user expects to see.

Analytical capabilities: fundamental and technical analysis

Any strategy should be based on an adequate analysis of current positions and factors that affect the price of the traded asset. The more complete and better the digest (so that the data being studied is verified and systematized in the form of trends, and not out of order), the more convenient it is to create analytical analyzes and build figures on the working field / chart.

Graphing tools

Figures

Adherents of such a branch of technical analysis as pattern recognition believe that price movements occur in a typical way. First of all, charts make it possible to visually see the direction of price movement - trends. Support and resistance lines are also recognized on the charts. These are the price levels below which prices cannot yet fall (support line) or above which they cannot rise (resistance line).

There are many patterns on the chart that can signal an upcoming price change. These are the so-called "head-shoulders", "hanging man", "hammer" and others. After these figures appear on the chart, traders begin to open or close positions.

You can customize the IQ Option platform according to your strategy to make trading more convenient.

Indicators

Indicators are algorithms that allow you to obtain data on future prices using quotes data for a certain period of time. Each indicator of technical analysis is based on a certain formula. It is with its help that the calculation takes place. Indicators look like auxiliary charts that are calculated and drawn in addition to the price chart itself.

Indicators are divided into three conditional groups:

• Trending - drawing curves and broken lines on the chart, describing price fluctuations, suggesting a trend (Moving Averages, Bollinger Bands, Bollinger Bands;
• Informational - displaying data from external sources or auxiliary statistics;
• Oscillators - determine the current position relative to some range (MACD, RSI, Stochastic Oscillator).

Graphs

Price movement is displayed by various types of charts, the main ones are only 3: 

• candlestick - shows the selected time period for which the price moved;
• linear - the simplest chart, just a line, which allows you to quickly determine the direction of price movement. The line is formed by combining closing prices for the selected timeframe;
• bars - the principle is the same as for candles, but a different visualization method. We see the opening and closing prices, the maximum and minimum price for the selected timeframe.

Functional

Calculator

Is it convenient to calculate the investment amount right on the platform on IQ Option? No need to go anywhere, look for your phone, just click on the investment amount and find the calculator icon. Investing a random amount of money into a trade (simply because you thought it was a good idea) is very similar to gambling. By contrast, investing a carefully calculated amount of funds can pay off in the long run.

Apply the rule when the optimal amount of money that you can invest in a particular trade does not exceed 2% of the total capital.

Indicator templates

If you prefer to use a certain combination of indicators in most cases, then you can save the indicator template. This is very easy and simple to do. You can access it on any asset in the "Templates" tab.

Alerts

You can set up notifications when the price reaches a certain level. Simply find the price target on the chart for which you want to be alerted.

Orders

Most trading orders are processed using electronic systems and algorithms that determine the order in which orders are executed. To save time, use the Stop Loss and Take Profit functions.

Stop Loss and Take Profit are types of protective orders that are placed to automatically close a trade. Stop loss limits the trader's possible losses, take profit helps to fix the profit when it reaches the desired level. The main task of such orders is to control trading in the absence of a trader.

Now you can interact with the market using your phone or tablet, which allows the trader to work and make deals anywhere. On the Windows and macOS app, the IQ Option platform is faster. There is also an app for iOS and Android.

What is IQ Option and how it works?

At its core, a contract for difference is purely speculative in nature. It is a derivative financial instrument based solely on changes in the price of the underlying asset. However, it does not provide any rights to this asset. The investor does not own the underlying asset, but instead earns income based on changes in the price of that asset.

The IQ Option platform offers a tool that allows you to profit from changes in asset prices without becoming their direct owner. Leverage is the ratio of equity to the value of what you want to buy or sell. At the same time, the presence of leverage allows you to trade CFDs with a relatively small deposit at your disposal.

Margin trading involves the provision of leverage at the expense of the funds that the trader contributes to him as a margin. In the event that the current loss on the position begins to exceed the amount of the margin deposited by the trader, the broker issues a margin call to him (requirement to replenish the margin). If this requirement is not satisfied, then the position will simply be closed with the current loss on it.

There is price slippage when trading CFDs. This is the difference between the expected order price and the price at which the order is actually filled. The probability of this phenomenon is high at times of high volatility, when market prices change rapidly. Slippage can happen with Limit Loss and Fixed Profit orders.

How to register? 

To start trading, you need to register on the platform. It's free and easy!

You don't need to leave your home for this. Everything happens online – all you need is an active email address. Do not forget to confirm the registration process so that you always have access to your account and the trading accounts opened on it.

Training account

If this is your first time using the IQ Option platform, then we advise you to start with tutorial videos or practice on a demo account and then move on to real money trading.

Trading on a demo account is carried out with virtual money and is practically no different from trading on a real account. A demo account is a simulator, a simulator of trading in the market.

After signing up, you get $10,000 in a demo account that you can use freely.

Real account

When you have already created an account and tried to trade on a demo account, select a real account in the control panel and make a deposit. Specify the size of the minimum deposit on the company's website in order to switch to a real money account. Remember to verify your identity after switching to a real money account in order to make a withdrawal later.

How to trade? 

The two most popular trading methods are short and long positions, and sometimes "intermediate trading" between them.

A long position is a purchase against the backdrop of rising prices in the market. An exchange trader buys an asset in anticipation of a rise in value in the future. With short-term forecasting skills, or monthly/yearly forecasts, or technical analysis, a trader ends up making a profit even when price fluctuations are small.

A short position is buying during a downturn. This strategy is appropriate when a trader predicts a decline in the price of an asset. Thus, the asset is sold subject to a possible future purchase at the lowest price. If the forecast were wrong and the price of the asset rose, traders would lose an amount equal to the deviation between the value of the asset at the opening and closing of the transaction. If the prediction is correct, the bidder makes a profit. This method allows you to bet on the shortest periods of time, even for a minute.

Deposit

IQ Option accepts various payment methods, credit/debit card or e-wallet. Thanks to this, you can deposit instantly at any time using your phone or credit card. In addition, the platform continues to add other payment methods, such as the AstroPay card and ADV Cash.

Deposit replenishment time will depend on your payment method.

Withdrawals

Withdrawals occur upon request to a credit card or bank account. In 2016, IQ Option switched to a fast withdrawal system, thanks to which 68% of applications are processed within a few minutes. 8.5 hours is the average time to process a withdrawal request.

Commission

The platform does not charge commission for account replenishment!

Fees are charged for withdrawals depending on the country, on the withdrawal via bank transfer and on the amount of the withdrawal. There is also a fee for account inactivity for 90 (ninety) calendar days in a row.