- 1 Complete IQ Option trading guide for beginners
- 2 Is trading forex a good way to make money on IQ Option?
- 3 Steps to take to trade fx on IQ Option
- 3.1 How to effectively use stop losses and take profit features
- 4 Trading forex for the first time with real money on the IQ Option platform
- 5 Withdrawing earnings from your IQ Option Account
- 6 Checking your withdrawal status
- 7 Conclusion
Complete IQ Option trading guide for beginners
The forex exchange market is one of the major offerings by IQ Option. It involves trading two currency pairs. That is, you are esentially buying one currency against another.
IQ Option offers over 85 different major currency pairs on their platform. This allows you to trade 24 hours each day for 5 days. This guide is for beginner traders who want to learn how to trade fx on the IQ Option platform.
A brief overview of the forex market
Forex, commonly abbreviated as FX involves buying a currency against another. As such, currencies are always traded in pairs. The value of one currency against another is always changing.
This change is driven by demand and supply. This demand and supply is mainly fueled by international trade. For example, say an Australian importer wants to buy goods from Japan. He has AUD.
But the Japanese supplier only accepts JPY. This means that AUD must be converted to JPY to facilitate the trade. If more Australian importers are buying using JPY than Japanese buyers are using AUD, the demand for JPY will be higher.
As the law of supply and demand dictates, JPY being in higher demand will rise in value relative to the AUD.
So where do you come in? As a forex trader, you will make money by speculating on the price fluctuations created as a result of this changing supply and demand for one currency against another.
So if the current AUD/JPY is 78.62550, your goal is to predict whether this value is going to increase or decrease over a specific amount of time. Note 78.62550 simply means that you can buy 1 AUD for 78.62550 JPY.
If you believe that the value will increase, you'll simply place a “buy” trade on IQ Option. If you believe the value will drop, you'll simply place a “sell” trade.
Unlike trading options where you specify the time when the trade expires, fx trading on IQ Option is a bit different. Your trades will remain active until a certain strike price is reached or you choose to exit the trade. I'll talk more about this later in this guide.
Is trading forex a good way to make money on IQ Option?
FX trading is a good way to make money on the IQ Option platform. However, losses can eat into your trading account. That's why it's important to choose a stable currency pair, use a good trading strategy and always use money management techniques.
One of the advantages of trading forex on IQ Option is that their prices are usually quite accurate. Another good thing is that the platform provides great features such as charts and indicators which makes analysis simple.
The forex interface is quite intuitive. The platform also provides a quick video to get you started trading forex.
If you want to start trading fx, follow these steps.
Steps to take to trade fx on IQ Option
Open an IQ Option trading account
Go to https://www.iqoption.com to open a trading account. Open the demo account first. This account comes with $10000 virtual money and will make it easy to learn trading.
The registration process is quite simple. Simply fill in the details requested for. IQ Option will send you an email link. This when clicked will be used to verify your new account.
Your first log in to your IQ Option account
Once your account is set up, log in with your email and password. Next, click on the plus “+” sign on the top of the screen. This will open a list of all financial instruments available on the platform.
Click on “forex”. This will reveal a list of the currency pairs available for trading. Choose one currency pair to get started.
IQ Option also provides a desktop app as well as smartphone apps which make logging into your account faster and more secure. You can download the IQ Option mobile apps for Android and iOS through the links below.
First familiarize yourself with the IQ Option trader interface.
One thing that differentiates the forex trading interface from the options trading interface is that you cannot change the background color. The reason for this is that the forex interface runs on a different trading engine. However, all other things remain the same.
Below is a snapshot of the forex trading interface. Some of the important features are as follows:
- Currency pairs being traded
- Left panel that includes features like open trades, chat and support, your trading history, open and upcoming tournaments and videos for trading different financial instruments
- Chart type (Use this to change among bar, candlestick and other charts types)
- Time interval for candles and bars
- Graphical tools including trend lines and basic lines
- Technical indicators including moving average and RSI
- Amount to invest per trade (Use + and – buttons to increase or decrease)
- Multiplier which adds leverage to your trade
- Auto closing setting. This is used to enter take profit, stop loss and trailing stop for open positions.
- Buy and sell buttons for trade entry
Trading forex on IQ Option simply involves predicting whether the price of the currency pair will rise or fall. If you think it will rise, you place a buy trade and vise versa.
Making your first FX trade on IQ Option
Step 1: Choose the currency pair
Click on the + button and select forex. Then choose your currency pair. I'll use EUR/USD in this example. [add EUR/USD snapshot]
Step 2: Choose the chart type and the indicators to use
I have chosen the candlestick chart with 5 minute candles. I won't use any indicators in this example.
Step 3: Place amount to invest on your trade, the multiplier and auto closing settings
Why? The demo account should be used to create discipline and a solid trading strategy which will be transferred to your real trading account.
Next, choose a multiplier. This is simply leverage that will be applied on your trade. For example, if you choose a X200 multiplier, your profit will be 200 times what you would have earned with just the amount you place on your trade.
Multipliers however must be used with caution. The losses you might incur are also multiplied in the same way.
That's why you must also place auto close settings. These include take profits which allow the platform to automatically close the trades when profits reach a certain amount.
The stop loss and trailing stop also come in handy. The will essentially automatically close the position when losses reach a certain amount thus protecting your account balance from being depleted.
Step 4: Decide whether price will go up or down
Based on your earlier chart analysis, you should decide whether the price will go up or down. Not only that, you must decide how far up you believe the price will rise.
Hover your mouse over the prices. A small box with a + sign will appear. Click on this price which will now be your strike price. Then enter the trade by clicking on “buy” if you expect price to go up or “sell” if you expect the price to go down.
If the price reaches this point and goes beyond the strike price, your trade will start making profit. However, unless the take profit setting is set at this price, the trade remains active. IQ Option provides a “close” feature at the top of your interface which can be used to exit trades manually.
It's therefore important that you keep track of all your fx trades on the screen. If however you don't want to keep track of your trades, always make use of the stop loss, trailing stop loss and take profit features to protect your account balance.
How to effectively use stop losses and take profit features
Let's say that you have decided to trade $100. When do you decide to cut losses and protect a good chunk of your investment?
Remember that with FX prices can move 100% in any direction meaning your $100 investment will be gone if prices go contrary to your prediction. If prices continue moving against you, the losses will eat into your account balance.
Professional traders understand that protecting the money they already have is more important than making more money.
Hence the use of stop losses. It's always recommended that you don't risk losing more than 10% of your investment amount. Therefore, for a $100 investment your stop loss should be at most at 10%.
That is, if your invested amount falls to $90, the trade should be exited.
Trading forex for the first time with real money on the IQ Option platform
After making several successful trades in the demo account, you should be ready to make real money on the real account. The following are the basic steps to take to open a real trading account.
Click on the “Deposit” tab at the top of your trading interface. There's the option to top up your demo account. The other option is to top up your real account with a minimum of $10. Choose the latter option.
Making your first deposit using Skrill
IQ Option accepts several deposit methods including Visa/MasterCard and eWallets like Skrill. This guide will take you through the steps for depositing with Skrill and Visa/MasterCard.
Click on the Skrill tab and press continue. Then choose the amount you want to deposit ($10 to $10000). Select your preferred currency from the drop down list. Click continue.
IQ Option will redirect you to Skrill where you will log in to your account and complete the transaction. A transaction receipt is generated and money will be transferred to your IQ Option account within minutes.
Making your first IQ Option deposit using Visa/MasterCard
Another good option is the use of Visa/MasterCard. On the deposit window, select Visa/MasterCard and click continue.
Next, you should fill in the deposit amount, your preferred currency and then click continue. You will be asked to provide details such as the card number, card holder name, validity and the CVC. Click continue and your card will be credited with the deposit amount. This also takes a few minutes to complete.
Making your first IQ Option deposit using Visa/MasterCard
Verifying your IQ Option account
IQ Option requires all active traders to verify their accounts. It's part of their policy to comply with anti money laundering laws. It also helps to protect your from unauthorized access.
The verification process involves providing personal information including your phone number, copy of your national ID or passport and a utility bill to verify your address. Once verified, IQ Option will send you a confirmation email.
Withdrawing earnings from your IQ Option Account
Once you've made profit from trading forex, it's time to withdraw your funds. Note that IQ Option requires you withdraw your funds to your depositing account. It should be in your name. In addition, account verification is needed before making your first withdrawal.
Log in to your IQ Option account and click on the withdraw button
Next click on the account to withdraw to. Add the amount to withdraw (minimum of $2) and click continue. If you have enough funds in your account, the withdrawal will be processed and funds sent to your account. The withdrawal process takes anything between 1 and 9 business days depending on the method you're using.
For more details on making withdrawals from IQ Option read this guide: Guide to withdrawing money from IQ Option.
Checking your withdrawal status
Once a withdrawal request is received, it's marked as “Requested”. At this point IQ Option withdraws the funds from your account.
The status then changes to “In Process” when the actual processing is taking place. Finally, the status will change to “Funds sent” when your withdrawal account has been credited with the amount. You can view the status in the “Withdrawal Funds” tab in your trading account.
Losses on the other hand can eat into your account balance and that's why using stop losses is a must.
Have you tried forex trading on IQ Option? We'd love to hear your experience in the comments section below.
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