The broker you are planning to invest money with should induce trust. The initial step is to know the broker. Then you have to become familiar with the platform as well. Today, I have decided to describe the IQ Option platform for you.
In order to be able to open a binary options position, you will have to open the account with the IQ Option broker. The trading platform will be accessible after you log into it.
What you need to know before entering the trade
There are a few things you need to think about before entering the trade. You should never rush into trading unprepared. Consider your possibilities and take your skills and experience into account when making trading decisions.
Timing is the first thing you should reflect on. Your trade should last a specific period of time. After the expiration of an option, you will earn a profit or lose the invested amount. So this is very important when your trade ends.
On the IQ Option trading interface, you will see the purchase time (1). It counts down to zero. Then it begins anew. This counter is dependant on the expiry time. You cannot enter the trade when less than 30 seconds left to expiration.
You have also a possibility to choose the exact time you want your option to expire. The corresponding field is placed in the top right corner (2). Choosing a specific time enables you to open the position which ends at a defined point in the future.
Then, you need to decide on the amount of money (3) you are ready to invest in this particular trade. Write it down or use plus/minus buttons. Keep in mind that if the market will move against your prediction you will lose that amount.
In the field below the invested amount (4), you will see the profit you can earn in case your transaction turns out to be successful.
The last thing is to decide whether you want to buy or sell. This will depend on the current and future direction of the price. You must make an assumption where it will be at the moment of the expiration of your trade. If you think it will rise, hit the “Higher” button. If you predict the price will drop, click on the red “Lower” button.
Let’s take a closer look at the expiration time. This is a very important element of your trading because the profit largely depends on it. You get a different return at different hours. Check the table below. You can clearly see what return you can count on at specific times. This information is accessible after clicking a time field.
Opening a binary option on the IQ Option platform
You have logged in to your IQ Option account, chosen the asset, set the chart and decided on the future price direction. You have filled all the boxes accordingly and hit the green or red button. Now your chart should look similar to the one below.
In my exemplary trade, I chose the EURUSD currency pair. I set the chart for 5-minute period Japanese candlesticks. I invested $1 and decided the price will move higher. With the return of 86%, I should receive $0.86 in case of a successful transaction.
There are 4 important fields marked on the exemplary chart above. Let’s discuss them one by one.
- Purchase time
This displays the time left to open a new trade.
- Expected profit
Here you will see how high is the profit you can gain at this particular moment. Here it is $0.86 because the price is higher than it was when I opened a position.
- Profit after sale
This field shows you how much you earn or lose in case of closing the transaction before the expiration time.
This button allows you to close the transaction earlier than the preset expiry time. Use it wisely. Exit the trade earlier when you are pretty sure that keeping the option open will cost you a more significant loss.
Be aware that you can only sale the trade before the expiration time when there are more than 15 seconds left. Beyond that time, you cannot sell the option. You will need to wait until the expiration time runs out.
Reviewing your past trades
IQ Option offers a feature called “Trading history”. It gives you the opportunity to keep track of your performance. You will see which transactions brought you a profit and which failed. By clicking on a specific position you will be able to view all the details about it.
You can learn a lot and improve your performance by reviewing your past trades. You may draw conclusions about the best assets for you, or the most favourable trading times. Trading history can also help you to develop and evaluate your own trading strategy.
A piece of advice for the beginners
There is quite a lot to do at the beginning. You must get familiar with the platform itself, work on the choice of the financial instrument, recognise the trend and the candles’ formation and so on. You have to remember that it will be easier with time. And that the learning process is crucial for future success.
Knowing how to manage emotions is no less important. You should develop a lot of patience and keep the greed and anger in check. Over excitement can be dangerous too. You can read more about maintaining control over the emotions.
IQ Option offers a free demo account. This is one of the best methods to practice your trading skills. You invest a demo currency there so you do not have to worry about losing your money. You can try different assets, different strategies and indicators. Moreover, you can use it as long as you need to.
Wish you successful trading!