How to Trade Forex in IQ Option

How to Trade Forex in IQ Option


What is Forex?

Currency is similar to language, in that it varies from country to country. If you want to do international business or buy goods from abroad, you must pay with the local currency. For instance, you wouldnt expect to use Swiss Francs to pay for your meal in Marrakech, which is exactly where Forex trading comes in.

Global currencies are traded on the foreign exchange market. Comparing this market to the stock market is one way to grasp the sheer scale of it; the average traded value of the global stock market is around $ 2,000 billion per day, while Forex trading surpasses $ 4.9 trillion daily.

Unlike some other markets, this is no central market for Forex trading. Currency trading is all done over the counter electronically on global computer networks between individual traders. There are five major Forex trading centers: Frankfurt, Hong Kong, London, New York and Tokyo.

The Forex market is open 24 hours a day, five and a half days a week, and operates across nearly every time zone, which makes for an active market in a continual state of flux, with prices changing all the time.

How to Trade Forex in IQ Option
Basic Principles

When currencies are traded on the Forex market, they are bought and sold in what are known as currency pairs, where one currency is used to buy another.

These pairs have been created to make comparing currencies easier, and as a way to better understand the value of one in relation to the other. The EUR/USD pairing is among the most popular.

In currency pairs, the first currency is the base and the second currency is referred to as the counter currency. So in the previous example, you are using USD to buy EUR. Your broker converts your existing currency into USD, and then uses that to buy EUR. When buying a currency pairing, you take what is known as a long position, and when selling you take a short position.

It is vital that you have a good understanding of the current climate of your chosen currency market. If you believe people are going to sell bitcoin, for example, then this will bring the price down in relation to the EUR.

We provide regularly updated information on many popular pairings, and we include the popular Bitcoin cryptocurrency in our currency index.

The majority of Forex traders focus on the following currency pairs: EUR/USD, USD/JPY, GBP/USD, and USD/CHF are the main four, followed by USD/CAD, AUD/USD and NZD/USD. All other pairs are just different combinations of the same currencies.

How to Trade Forex in IQ Option


Trading Forex Risk Assessment

Foreign exchange is a relatively stable market, with most currency pairs moving less than 1% daily, meaning the value changes very little.

However, because of this low level of volatility, many Forex traders utilize the huge leverage to greatly increase the value of these price movements. Leverage in the Forex market can be as high as 250:1, but this higher level of reward also carries a higher level of risk.

The deep liquidity of the Forex market, coupled with the fact trading continues 24 hours a day, means that Forex brokers can make that high leverage industry standard, in turn making any price movements far more meaningful for Forex traders. Time is another factor, and positions can be opened and closed within minutes, or retained for several months. The sheer size of the Forex market makes it impossible for the bigger players to start manipulating prices, as well.


How to start Forex In IQ Option

How to Trade Forex in IQ Option
 

How Much Leverage is Available?

How to Trade Forex in IQ Option
Leverage is what makes it viable for many individuals to partake in the forex market under normal trading conditions (minimum trade size = 0.01 lots). Without access to leverage, a person with a trading account of $250 would not be able to trade forex if the minimum lot size were 0.01 lots, which would require more or less $1000 of capital. Luckily, with IQ Option, small transactions are possible, even if you prefer not to use the lowest leverage setting which is available.

IQ Option has the following leverage (investment multiplier) options available:
  • Pro EU traders and non-EU traders: up to 1:1000.
  • Retail EU traders: 1:30. These have access to lower leverage because of ESMA (European Securities and Markets Authority) restrictions.
*EU = European Union


Forex Spreads

How to Trade Forex in IQ Option
An example of some of the lowest forex spreads on IQ Options Trading Platform

IQ Option’s forex spreads start from about 0.015%. These are floating spreads that change according to market liquidity, news releases, and other factors.


Forex Market Hours

The forex market is basically open 24 hours a day, 5 days a week. However, not all of the currency pairs offered by IQ Option can be traded 24/7. Some examples are CHF/ZAR and AUD/ZAR.


Minimum Deal Size

The minimum deal size on IQ Option’s forex pairs is $1. This is the same for all clients from around the world, and for any leverage setting.


Minimum Deposit

With only $10, you can open a real money account with IQ Option!

How to Execute Forex Trades in IQ Option

1. Choose the currency pair you want to trade by clicking the plus (+) button at the top of the platform, click on “Forex” and then select the pair you need:
 How to Trade Forex in IQ Option
2. Choose the amount you would like to invest.

3. Choose the amount of leverage you require.

4. Pre-set your stop loss and take profit orders with the “Auto Closing” function (these can also be set after the position has been opened).

5. For pending orders, enter the price at which you would like to enter the market.

6. For a long (buy) position click “Buy”.

7. For a short (sell) position click “Sell”.

How to Trade Forex in IQ Option

About Indicators, Charts, Trading Tools, and Other Platform Features...

When trading forex, trading tools and technical indicators can come in pretty handy. On IQ Option’s trading platform, you will find the following features:
  • Different chart types, including Heikin-Ashi, candlestick charts, line charts, and bar charts:
How to Trade Forex in IQ Option
  • Different time intervals for bars and candles:
 How to Trade Forex in IQ Option
  • Graphical tools
  • Special widgets like Other Traders’ Deals, Traders’ Mood, and High and Low Values:
How to Trade Forex in IQ Option
  • Market analysis
  • Video tutorials:
How to Trade Forex in IQ Option
  • Chats and support
  • Help
  • Technical indicators (oscillators, different moving averages, momentum indicators, etc.

Free Demo Trading - Practice Your Forex Trading Skills
IQ Option’s solid demo account has all the trading instruments and features of a real money account. Traders can use their demo accounts for as long as they want to because it does not expire. Traders with live accounts can easily switch between their demo and live accounts. Demo account balances can also be topped up to the original value on the platform itself:
How to Trade Forex in IQ Option
By Clicking "Top Up", this demo account balance will be restored to the original value of $10,000.

Conclusion

IQ Option’s platform has many features which make forex trading convenient for its clients. Trade execution is fast, and it is easy to make adjustments to a position’s (or pending order’s) parameters before or after it has been placed. The number of forex pairs available on IQ Option’s trading platform is really good, which is likely to expose clients to more trading opportunities and better portfolio diversification.

Furthermore, IQ Option’s clients have free access to the video tutorials on the platform and are able to chat with other traders via the “Chats and Support” tab. Customer support is also available 24 hours a day, 7 days a week via live chat or telephone assistance.
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