How to start CFD trading at IQ Option


Choosing assets for CFD trading

In the trade room window on IQ Option platform click on the plus (+) button to access the list of assets.

Openning new asset
Openning new asset

All non-options instruments share the same trading engine and you can trade them as CFD but they have different specification like different spreads, multipliers or overnight fees. Select a group of assets (1) than the asset you’d like to trade (2).

Choosing an asset to trade
Choosing an asset to trade CFD on

Key Takeaways🔑

CFD trading allows you to speculate on the price movements of various assets without owning them.
Using a multiplier can increase both potential profits and losses, making risk management crucial.
Setting stop loss and take profit levels can help manage risks and secure gains in CFD trading.

IQ Option trading interface for CFD trading

Set the amount of money (1) you’re willing to invest and select an appropriate multiplier (2). A multiplier will allow you to invest a larger amount than the one you have on hand which means your potential profit will be bigger.

However, the losses you could incur would also be multiplied by the same number. Click on the Auto Close (3) option to specify the stop loss and take profit price levels.

A stop loss restriction automatically closes your trading position when the losses on that trade reach a certain amount. Similarly, a take profit restriction will automatically close your position once a certain amount of profit is made.

Depending on whether you believe the asset is going to appreciate or depreciate, click buy or sell (4).

CFD trading interface
CFD trading interface

Pros and Cons of CFD Trading📊

👍Access to a wide range of assets, including stocks, commodities, and currencies. 👎Leverage can magnify losses as well as profits, increasing risks.
👍No ownership of the underlying asset, avoiding certain costs and complications. 👎Overnight fees can add up if positions are held for extended periods.
👍Ability to profit from both rising and falling markets. 👎Not suitable for long-term investments due to associated fees and potential for large losses.

Comparison: CFD Trading vs Traditional Investing🔍

CFD Trading Traditional Investing
Profit from both rising and falling markets. Primarily profit from rising markets.
Use of leverage to increase potential gains and losses. No leverage, limiting potential gains and losses.
Short-term trading focus. Long-term investment focus.
No ownership of underlying assets, avoiding certain costs and complications. Ownership of assets, with potential benefits and costs.
Overnight fees for holding positions. No overnight fees, but potential management fees for certain investments.

Closing CFD transaction on IQ Option platform

The position will remain open and active either until the auto closed limits are reached or until you decide to close the deal yourself. You can manually close (1) the position whenever you see fit by clicking on the close button.

You can also adjust auto close settings by dragging levels visible on the chart (2).

Position management
Position management

Also read: CFDs On IQ Option Made Simpler.

We wish you a pleasant trading experience.

Common Questions About CFD Trading❓

    • What types of assets can I trade using CFDs?

CFDs allow you to trade a wide range of assets, including stocks, indices, commodities, and currencies.

    • How do I manage risks in CFD trading?

Using stop loss and take profit levels, as well as carefully selecting your leverage and position size, can help manage risks in CFD trading.

    • Is CFD trading suitable for long-term investments?

CFD trading is generally not suitable for long-term investments due to overnight fees and the potential for large losses resulting from the use of leverage.

    • What is the difference between CFD trading and traditional investing?

In CFD trading, you speculate on price movements without owning the underlying assets, while traditional investing involves buying and holding assets for potential long-term gains.

    • Can I practice CFD trading before using real money?

Yes, many trading platforms offer demo accounts that allow you to practice CFD trading with virtual funds, helping you gain experience and develop strategies before trading with real money.

GENERAL RISK WARNING

The financial products offered by the company carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.
Kindly note that this article does not provide any investment advice. The information presented regarding past events or potential future developments is solely an opinion and cannot be guaranteed as factual, including the provided examples. We caution readers accordingly.

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Bart Bregman

Author / IQ Option expert: "My name is Bart Bregman, I have 9 years of full-time professional trading experience. I've been trading with IQ Option for more than 7 years, mainly on the shorter time frames doing technical analyses, and have many experience with Binary Options, CFDs, Options, and Crypto trading. There is no such thing as a bad trade! As a digital nomad trader, I'm mostly traveling all over the world. Follow my journey on Instagram at https://www.instagram.com/bart_bregman/. "

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