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Working with IQ Option you get access to a wide range of trading tools. A newcomer could be intimidated by the variety of choices available. For this reason we have created an article that will guide you through the list of tools currently available on the platform.
As one of the most successful investors of the 20th century said, do not trade with what you do not know. With a better understanding of the tools you will certainly be able to improve your trading.
Three types of Options are available: binary, digital and FX. All instruments use the currency pairs as below. In trading with digital options you will have to select an exercise price, or strike price (a special threshold that the price action must exceed). The FX Options, on the other hand, work slightly differently. The return / loss of the transaction is automatically calculated based on the distance between the current price and the target price. As always happens in trading, the greater the risk and the greater the potential return. However, according to ESMA, binary and digital options are only available to customers classified as professionals.
CFDs on equities
Contracts for differences in securities use equities as an underlying asset (although not the same as trading in the securities themselves). Not only do CFDs behave differently from currency pairs, but they are also traded very differently. In trading with CFD on the IQ Option platform there are no strike prices or maturities. All you have to do is select an asset of your choice and wait for a price increase (or a fall, in case of short sale), then manually close the operation. The trader has the possibility to select a multiplier and then adjust the risk / return ratio according to his needs.
Forex is the most popular trading tool in the world, for good reason. It is simple enough to involve anyone, yet it offers unparalleled depth and involvement. In Forex trading, traders buy and sell currency pairs that fluctuate based on technical and fundamental factors. In order to trade Forex with IQ Option you need to select a currency pair, click on "Buy" or "Sell" according to your prediction and then close the transaction at the appropriate time.
The cryptocurrencies have lost much of their charm from the inexorable descent that began at the end of 2017. However, those who know Bitcoin and its younger "colleagues" undoubtedly have good opportunities to exchange them with good results. The cryptocurrencies and the fiat currency have little in common, however, they are exchanged in the same way. You can follow the same steps as for trading a conventional currency pair.
Remember that some assets have a predetermined multiplier, which will significantly increase both the potential return and the loss.
CFDs on ETFs, commodities, indices
All three, despite being radically different by their nature, fall into the same category for the fact of being exchanged in the same way. The fundamental factors play an essential role for all three underlying assets. The return / loss of operations depends on the difference between the price of the asset at the time of opening and the current price.
As you can see, all assets currently available on the IQ Option platform fall into one of the two main categories. Those that use deadlines and strike prices and those that do not provide for them. The first ones will close automatically at the time of expiry. The result of the transaction will depend on the position of the strike price with respect to the current price. The latter must be closed manually. For all assets that do not provide for the setting of an expiration date, the automatic closing function can be used. More information is available here.
General Risk Notice
The financial services provided by this website carry a high level of risk and can lead to the loss of all your funds. You should never invest money that you can not afford to lose
Source: IQOption blog 2018-10-09 11:04:07