Charts show two lines that mark points in time.
The purchase time is represented by the white dotted line. When this time has passed, it is no longer possible to purchase an option for the expiration time that has been chosen.
The expiration time is represented by the solid red line. When a transaction goes past this line, it closes automatically and either a profit or a loss will be taken. Users can choose any expiration time that is available. If a deal has not been opened yet, both lines will move to the right together to indicate the purchase deadline for the chosen expiration time.
The number of options that can be purchased for an expiration or an asset is not restricted. The only restriction lies in the margin. If a large amount has already been invested in the chart direction you choose, the amount that can be invested is limited by the margin. This is however unlikely to happen, as the number of sellers and buyers is almost always virtually the same. When working in a real account, the investment limit for each of the chart options can be viewed by clicking on the box where the amount is entered.
As we feel that trading should be available to everyone, the minimum transaction amount on our platform is Р‚1 or $1, depending on the account currency selected. Likewise, minimum deposit amounts are Р‚10 or $10.
When a Call or Put option is bought, three numbers are displayed on the top right-hand side of the chart:
1. Total investment indicates how much was invested in a deal
2. Expected Profit shows the potential result of a transaction if the chart point at the expiration line ends up at the same place where it is at the time of the transaction.
3. Profit after Sale indicated the actual profit or loss of a sale. Green indicates a profit, while red indicates a loss.
Both the Profit after Sale and Expected Profit numbers are dynamic, and will change depending on a number of factors. These include the current price of the asset, how close the expiration time is and the current market situation.
Traders often sell when they’re not sure that the transaction will result in a profit. The system allows the option to minimize your loss on a doubtful option.
During weekends, exchanges are closed and OTC assets can only be traded with quotes that are generated automatically. We can however not allow premature sales for non-exchange options.
If operations have not been performed by a user on the platform for 90 days and there money remaining in the account, we deduct 50 euros as a fee for servicing the inactive account, up to a maximum of the total trading balance. If there is for example only 20 USD/EUR in an account, we won’t charge more than 20 EUR/USD.
When Binary or Digital Options are traded, there are 2 ways in which a profit can be made from correct predictions:
1. Sell only certain or all options prematurely. Traders use this method to lock in profits or losses right now, without waiting for transactions to expire.
1. Keep the option open until it expires. The result will show on the chart when the transaction closes.
When it’s best to trade depends on the trading strategy used and a few other factors. We recommend you look at the market schedules, as overlapping of European and American trading sessions makes pricing more dynamic in currency pairs such as USD / EUR. Market news could also affect the movement of a chosen asset. It is better for inexperienced traders not to trade when prices are highly dynamic, especially if they don’t follow the news and don’t understand why prices are fluctuating.
If you want to use the IQ Option platform and don’t have much experience, you can start by looking at our video tutorials. You can also train on a practice account, and then move over to trading with real funds later on. You can also find information about trading on the IQ Option Blog pages.
Digital and Binary Options are similar and only available to Professional Clients. The main difference between the options is the risk and profitability of each deal, and this depends on a strike price that is manually chosen on the right side of the chart.
– The closer the strike price is to the current price of the asset, the lower the risk and potential profit.
– Digital Options can have a potential profit of up to 900%, but an unsuccessful trade will result in the loss of the investment.
Note: Digital options expire-in-the-money only if the actual price is not exactly the same as the strike price. For call options, the actual price should exceed the strike price by at least 1 pip, while the actual price should fall behind the strike price by at least 1 pip for put options.
Selling is only allowed when there is more than 2 minutes left before expiration for long-term options, or more than 15 seconds for short-term options.
If expiration occurs at the end of a day, week, or month, the Sell button is available until there is less than 45 minutes left.
For Digital Options, the Sell button is always available.
OTC or over-the-counter trading is a method that is available when the markets are closed. When doing OTC trading, quotes are generated automatically on a broker’s server in such a way that equilibrium between sellers and buyers is maintained.
IQ Option switches from market trading to OTC trading on Fridays at 21:00 and back from OTC trading to market trading on Mondays at 00:00 am (GMT).
The IQ Option trading platform has CFD cryptocurrencies, Forex and CFD stocks available.
With CFDs, a trader predicts the direction of future price movements and capitalizes on the difference between future and current prices. CFDs react the same as a regular market. If the market goes as predicted, the position is closed at a profit. In case market goes the opposite way, the position is closed at a loss. The difference between Digital or Binary Options, and CFD trading is that profits depend on the difference between the closing and entry prices.
There is no expiration time in CFD trading, but a multiplier can be used, and stop losses and triggers can be set on a market order if the price reaches a certain level.
CFD trading uses multipliers which help traders control a position that exceeds the amount invested in it. This results in the potential profitability and risk being magnified. Investing for example $100 may deliver a return that is comparable to investing $1000. Remember however that the same applies to potential losses which would also be multiplied.
A stop-loss is an order set to limit the losses for a specific open position. A take-profit order works the same way, but allows traders to lock in profit when the position reaches a certain price level. The parameters can be set in asset price, total amount, or percentage.
If a long position is opened, the profit can be calculated by using the formula: (Closing price / Opening price – 1) x multiplier x investment. If a short position is opened, the profit is calculated by using the formula (1-closing price/opening price) x multiplier x investment, e.g.
For a JPY / AUD Short position: Closing price: 84.325 Opening price: 84.649 Multiplier: 1500 Investment: $1800. The profit is (1-84.325 / 84.649) X 1500 X $1800 = $10 344.44
The smallest amount with which a deal can be opened depends on the account’s currency. The minimum investment on any instrument is: 1 EUR, 1 USD, 30 RUB, 1 GBP, 20 BRL, 20 TRY, 100 000 IDR, 40 MYR, 70 CNY and 200 000 VND.
Slippage is something that may occur when CFDs are traded and is defined as the difference between the price at which an order is actually executed and the expected price of an order. It works either negatively or positively. It occurs most often during times when the market is volatile and prices fluctuate quickly. The scenario can happen with Take Profit and Stop Loss orders.
-How To Start Trading On IQ Option?; -New Product: Classic Options; -Classic Options. How It Works; -How to Trade Classic Options?; -MACD Indicator; -Strangle Trading Scheme for Classic Options; -Trading Window Adjustment; -Prescheduled Trade Closing; -Chart Display Types; -Moving Average; -Bollinger Bands; -Three Black Crows Pattern;-Trading With Multicharts; -RSI;-Pin Bar; -Piercing Line Candlestick Pattern; -Trend Lines; -Line Breaking Pattern;-Line Rebound Pattern; -Rainbow Pattern; -Local Levels Breaking Pattern; -Classic Options;
Market Analysis; -Economic Calendar;
ADX – The One That Will Detect Both Trend Direction And Strength;-ATR: A Unique Volatility Indicator; -Identifying Oberbought and Oversold Levels With the Stochastic Oscillator; -Alligator & Fractals: a Powerful Combination of Technical Analysis Tools; -What’s So Awesome About the Awesome Oscillator? Learn 3 Popular Technics; -What is the MACD indicator and why is it so special?; -What is a Moving Average? An Easy Way to Set up and Use in Trading; -How to Trade with Parabolic SAR in the Most Effective Way; -‘Bollinger Bands’ Indicator; -RSI: How to Set Up And Use in Trading; -Support and Resistance: Your trading essentials; -CCI + MA Trend-Follow Method for Binary Options Trading; -CCI – what is it? How to use indicator on binary options; -6 Ways to Get Maximum Gain from RSI Indicator; -IQ Option Technical Analysis: The Ultimate Tool; -‘Alligator’ Technical Analysis Indicator;
What are Classic Options?; -How does it work?; -How to trade Classic Options; -Trading Classic Options: The Basics; -6 Facts About Procter & Gamble (PG) Stock Shares; -Should you trade American, European or Classic Options?; -Classic Options: Unleashing the Profitability;
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