How to Use IQ Option - a Detailed Guide

The name IQ Option has recently been talked about among various trading circles the world over. It is a trading platform that allows its users to trade a variety of instruments, including CFDs on Stocks, commodities, forex, ETFs and indices. The broker is primarily CFD based. A trader will have an outcome based on the price of the asset without acquiring it. CFD trading is all about predicting the direction of the price development and open a deal. The deal’s outcome is determined by the direction the trader chooses as well as the actual direction the price moves. The platform may seem a bit complicated at first and a common question among novice traders is – “how to use IQ Option”. The following article aims to address this in the most insightful way possible. 

 

 

RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK

 

 

Things To Understand Before Start Trading On IQ Option

After signing up for this platform, the first thing one should do is get familiar with IQ Option’s features and the interface itself. The platform has been designed to keep easy navigation and user-friendliness in mind. Almost all the features and tools can be accessed easily and directly from the interface. We shall now go through them one by one.

 

 

IQ Option features and interface

The features provided by IQ Option can be divided into two categories for our convenience: Features present on the top and left side of the interface and features present on the right and bottom side of the chart.

 

Features present on the top and left side

1. Open new instrument: You can choose a new instrument to trade with by using this feature. Simply click on the “+” sign to open a list of different assets thatyou can access for trading. The list includes CFDs, stocks, cryptocurrencies, Forex and binary options.
2. Selected instruments: This panel shows you the trading instrument which you have selected. It is automatically added to the top of the interface after the user has made his/her selection. The real-time trading chart of the instrument can be accessed simply by clicking on it.
3. Multi window view: The multi window view feature is extremely helpful if you have selected multiple instruments and want to view their real time charts simultaneously. You can access up to 4 different multi window views through this feature.
4. Currently viewed instrument: This feature serves as an indication of the instrument chart a trader is currently viewing.

5. Chart type: This feature allows us to select the type of chart to use during trading, according to our preference. IQ Option offers a myriad of charts including Heiken-Ashi, bar, line, Japanese candle and others.
6. Time interval: This feature allows traders to change the time interval of a single candle or bar before another one starts.
   Graphical tools: You can select drawing tools for application in technical analysis via the graphical tools feature. This is inclusive of horizontal lines, trend lines and Fibonacci lines.
7. Indicators: This feature allows a trader to select the indicator for use in technical analysis. The indicator list includes everything from oscillators to moving

 

 

 

Features Present on Right and Bottom Side

1. Purchase time: The purchase time feature is marked by a vertical dotted line with a small clock icon at the bottom. This feature simply finds out the time remaining before a trader is allowed to enter a trade. The line moves away from the prices when the time expires, after which the countdown begins again.
2. Trade expiry: This feature is applicable when trading options. The price must touch this line for the trade to expire depending on how long the trader holds his/her position.
3. Account balance: This feature shows the amount of funds remaining in a trader’s account.
4. Deposit button: Traders use this feature when depositinginto their real account. This feature can also be used to replenish a demo/practice account when their virtual funds drop below $2000.
5. Amount: This feature simply shows the amount a trader wants to invest in a single trade. It can be manually adjusted by clicking inside the box and typing in the preferred amount.
6. Expected return: This feature highlights the expected profits a trader will get when the trade is a winner.
7. Higher button: Traders use this feature to enter a buy position. If the trader feels that the price is higher at trade expiry, they can click on this button to enter a position.
8. Lower Button: Traders use this feature to enter a sell position. If a trader thinks that the price is lower at trade expiry, they can use this button to enter a position.

9. Time interval bar: This feature can be used to change the chart to reflect price changes over a specific period. It ranges between 30 days and 2 minutes when it comes to options.

 

 

IQ Option Indicators

To cater to traders of all tastes, preferences and experience levels, IQ Option provides four widely used indicators.

• Moving Averages
• Bollinger Bands
• Relative Strength Index
• Alligator

 

 

These indicators can be used both separately or in combination with other indicators and serve to help traders forecast the direction of price movement.

 

• Moving Averages: Moving Averages or MA are used to find out the average asset price based on a predetermined time interval. When the diagram crosses the MA, it may be seen as a signal to buy options in the direction of the breakthrough. The signals become more accurate as the time interval is stretched longer. However, their number also decreases in this case.

 

• Bollinger Bands: This is one of the most popularly used indicators in technical analysis. It creates a corridor within which the price moves, based on the data from the MA and standard deviations. Traders can get signals for entry if they focus on the corridor borders. If the price breaks the top limit, traders should sell PUT options. Alternatively, they should buy CALL options if the price breaks the lower limit.

 

• Relative Strength Index: This indicator is available only when using a Japanese candlestick. It is also one of the most used indicators in technical analysis which reflects both the magnitude and the strength of the price changes. RSI is not displayed on the chart in any form, unlike other indicators. It is instead built in a separate window available just below the chart. This indicator can give birth to a lot of different strategies. Additionally, the RSI also shows asset oversold and overbought levels, based on historical data. Traders should buy PUT options when an asset is overbought and buy call option if the asset is oversold.

 

• Alligator: The Alligator is an indicator that is presented as three Mas of 3 different periods. When the lines cross, it is indicative that the trend is about to begin. The trend begins definitely after all three lines start pointing in the same direction. Traders should follow the trend when this happens. The Alligator indicator facilitates many of the varied strategies that are profitable in trading.

 

 

IQ Option Order Types / Details about Call and Put (Buy and Sell)

The CALL and PUT buttons are available in the IQ Option trading platform, with the CALL button highlighted in green and the PUT button highlighted in red. When trading options, traders have to make a lot of decisions. The strike price is the price of the asset that the trader assumes it will reach and go beyond within the expiry time. Traders can choose a strike that is either above or below the current price. The only thing that matters is how far the price is from the strike at the expiry point. Here, the direction is the most important factor, which brings us to the concepts CALL and PUT.

Once a trader has chosen the strike price, the next thing they need to do is to decide the direction of the price. This is where CALL and PUT buttons come in to play. Traders should click CALL if they think that the price will rise. Alternatively, they may choose PUT if they assume that the asset price will fall. Traders need to adjust the strike price as well as the position of the asset price depending on the strike price they have chosen. This will determine the outcome.

 

 

How to Start Trading on IQ Option

Opening an account: You will need to create an account on the IQ Option platform to start trading. To do this, go to the signup option on the main page of the website and fill in the required information including name, surname, email, password, address, country, phone number, and date of birth. Completing these steps will allow you to open your account after which you can start trading.

Deposit Money: IQ Option provides multiple methods for depositing money. These include Mastercard, Visa, NetBanking, UPI, RuPay, ADVCash, Skrill, Perfect Money, and WebMoney WMZ. The processing time taken depends on the deposit method chosen. All the deposit methods accept any one of 4 base currencies: USD, EUR, GBP, RUB.

 

The minimum deposit amount is 10 EUR, 10 USD, 10 GBP, and 700 RUB.

 

 

Making Your First Trade on IQ Option

You should first begin by selecting a trading instrument and determine the trend direction. After this, go ahead and enter your trade. For instance, if you think that the price will go up in 1 minute, select it. If you make an investment of $1000, you will make a $770 profit depending on the 77% profit level.

 

Here you need to look at three important features that is required to make your first trade.

• Expiry time: This refers to the time remaining before the option expires. Upon expiry, the trader will know whether their trade was successful or not.
• Expected profit: This shows the amount the trader will receive if the trade is successful.
• Profit after sale: Traders use this feature to exit the trade before expiry. This feature can be used if the trader feels that the trade will be a loser if it runs till expiry. Simply clicking on the sell button will allow the trader to take this profit.

 

It should be noted that a trader cannot exit a trade by using the sell order if the expiration timer counts down to 10 seconds. He/she will have no choice but wait till the entire trade expires.

 

 

How to Keep Track of Your Trading Transactions On IQ Option

IQ Option provides a wonderful feature called trading history. This allows traders to know which trades were winners and which were losers during the course of their trading experience. You can find this on the left of the IQ Option interface.

 

 

How to Trade Successfully as A Beginner on IQ Option (Tips Guide)

Beginners should keep the following tips in mind if they want to achieve success as a trader.

• Learning how to identify trends
• Finding the right asset to trade
• Manage your emotions
• Manage your account balance

 

RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK

 

 

FAQs

1. What is the minimum deposit requirement to open a trading account?

IQ Option has a low minimum deposit of only $10.

2. Can you really make money with IQ Option?

IQ Option is one of the most legitimate brokers available on the market. It also provides many safety and security features.

 

Conclusion

As one of the most advanced and efficient binary options and CFD brokers, IQ Option has carved out a reputation for being one of the most reliable brokers in existence. The above article addresses the question “how to use iq option” in a manner suitable for most beginners and novice traders. Additionally, the broker also has dedicated educational resources that aim at educating novice traders on the platform and helping them grasp the numerous trading concepts required.