The most applicable strategies for trading on IQ Option.

Although the following aims to discuss successful strategies and their usage, let's take a trip down memory lane to see how trading worked in times past and how things are different now.

All thanks to the constant evolution of technology, online trading has become a thing. Gone are the days when heading to the waiting halls of financial entities to make trades was a thing. Trading online has brought about a dramatic change to proceedings. 

Besides the convenience featured in this modern market form, one thing that has made investors (new and seasoned) coming back for more is the extensivity of financial instruments. 

Unlike the "non-technological" times, investors can make trades on multiple trading variations like CFDs and stocks. Also, if forex trading is your area of specialty, there are so many currencies available. All you need is to make a choice.

Talking about preferences, you'll see loads of online sites that tout themselves as the best brokerage platforms for binary options and other mediums. 

While these platforms are worth checking out, IQ Option is one online broker for trading becoming increasingly popular amongst Singaporean traders. Well, if you haven't heard about this platform, get a hold of certain specifics in this article.

Below, you'll get insights on the background of IQ Option, trade options available on this platform, and of course, the IQ Option strategy you can employ to ensure positive returns on trading instruments.

Ready to take that bold step into the world of online trading? This article was crafted just for you. Without further ado, let's see what the IQ Option platform has in store for you.

IQ Option in Singapore
IQ Option in Singapore

General Description of the Platform and Trading Principles: Specifics for New Traders

As an online broker financial trading platform, IQ Option helps traders make trades on different financial instruments without hassles. 

Just like this platform's naming scheme suggests, IQ Option is a trading platform that hosts numerous alternatives ranging from cryptocurrencies, commodities, options, ETFs, stocks, and indices.

For traders looking to access the offerings of forex Singapore, IQ Option caters to their needs effectively with that currency alongside a vast array of other trading pairs. 

Apart from the variety IQ Option exudes, the presence of several tools makes trading more convenient and rewarding at all fronts. However, for an IQ Option strategy to work, you'll have to know what scenario requires the input of a specific plan. 

When IQ Option entered the online trading scene in 2013, the goal was to attain stellar recognition amongst traders in subsequent years. That said, it's worth noting that IQ Option is gaining steady traction in EU and Non-EU countries (Singapore inclusive). 

Recent reports show that the IQ Option platform handles over 2 million trade transactions daily. With this number bound to rise exponentially in the coming years, the future of this online broker looks promising.

Statistics on the number of transactions per day
Statistics on the number of transactions per day

Before we divide this segment into categories for a foundation to the "must-know" aspects of this online brokerage platform, it'll please traders to know that IQ Option is an entity that has its activities licensed and regulated across the board. 

With the IQ Option headquarters based in Cyprus, this platform is licensed by CySEC (Cyprus Securities and Exchange Commission). 

What does this mean? The IQ Option trading platform is legit and carries out trade-related activities following global regulations and provisions.

Now, to understand what the IQ Option platform entails at face value, we'll be giving insights into the intricacies every new investor would like to know. They include:

  • Account types;
  • Financial instruments;
  • Trading principles.

Account Types

On the IQ Option site, the needs of traders from all walks of life are catered to effectively. How? By not only providing numerous trading assets but featuring different account types.

Account types available on IQ Option includes:

  • Practice Account

IQ Option's practice account is the default account type. Once you've completed the sign-up process and you've opted for a free account, what you get is the practice/demo account. 

While the naming scheme featured with this account type is self-explanatory, you can practice trades on several financial instruments without having to make any form of real money commitment.

Once this account is set up, you receive $10,000 immediately in virtual cash. Unlike previous notions, IQ Option doesn't display different market trend schemes for the practice account. The trade screen on the practice account is the same on real accounts. Here, the only difference is that you can't make real money on the former.

  • Real Account

As the name suggests, the real account gives traders an insight into a "real-life" trading experience as they can make trades on over 70 assets. Here, you can make real commitments financially on instruments like cryptocurrencies and options. 

Peradventure, you make positive returns on a trade, you can make withdrawals. Unlike other online brokerage platforms, IQ Option accords traders the luxury of making complete withdrawals. 

That said, while withdrawals with e-wallets are relatively instant, you might have to wait for up to 3 working days towing the path of Credit cards and bank transfers.

To open a real account, you'll have to send proof of identity. However, new traders shouldn't fret as this process is hassle-free. After making a few document uploads here, you can now make deposits and begin your trading adventure.

Moving on, IQ Option tends to make things a tad bit interesting as it incorporates specific tournaments and promotions that are time-specific. There's also a live chat present to give swift resolutions to customer issues.

  • VIP Account

The VIP account is for traders that aim to make huge trades as they engage numerous assets. If you'd like to open a VIP account, the only feasible medium is making a $1900 or higher deposit.

Due to the European Securities and Market Authority (ESMA) restrictions, traders present in EU jurisdictions can't access the VIP account. 

However, if you're in regions like Singapore and other non-EU countries, you can opt-in for the VIP account as long as you're willing to meet the caveats associated with this account form.

Although the VIP account works similarly to the real account, there are extras for traders who tow the path of the former. These incentives include:

  • A personal account manager;
  • Unlimited access to every IQ Option tournament;
  • Extra tutorial materials for trading;
  • High-profit margins associated with options.
Select account type
Select account type

Financial Instruments

As we've established in the preceding paragraphs, IQ Option features a vast array of trade assets. Although this online broker majored in binary trading Singapore options during its fledgling stages, it has gone on to make some noteworthy additions over the years.

On IQ Option, assets are classified as CFDs. Talking about CFDs, these are Contracts for Differences. A CFD can be likened to a financial contract that aims to pay the differences between opening and closing trades. 

CFDs on IQ Option cuts across stocks, Exchange Traded Funds (ETFs), options, forex, and cryptocurrencies. 

Now, let's take a look at these asset types critically.

HStocks

IQ Option features the stocks of over 150 different companies. These entities are considered the most successful organizations worldwide and have their stock prices featured on renowned trading markets like the NYSE and NASDAQ.

Exchange-Traded Funds (ETFs)

Although this trade form is a relatively new offering present on IQ Option, it's pretty extensive. Traders are plying the path of ETFs as they are assets that are crucial to investment portfolio expansion.

Trading ETFs are likened to stocks, and on IQ Option, over 4000 ETF variations are available. This number includes highly volatile commodities like Silver, Gold, and Oil.

Forex

Popularly known as FX trading in most parts of the world, forex on IQ Option gains traction amongst traders. At this online broker, you can access currency pairs summing up to 188.

However, it's pertinent to note that with more stock options being churned out, this number is bound to rise as time goes on.

Cryptocurrencies

This digital currency option is also available on IQ Option. Here, traders can access popular cryptocurrency options, including Ethereum, Monero, Dash, IOTA, Litecoin, Zcash, Bitcoin, Ripple, and Omisego.

Options

Options at IQ Option are divided into two distinct parts: Binary Options and Digital Options. While both options involve speculating the market direction on each asset accurately, their payouts are different.

Here, binary options feature a payout rate of 95%, and digital options come in at an astronomic payout of 900%. 

However, it's pertinent to know that an inaccurate guess might lead to capitals getting lost.

Financial Instruments
Financial Instruments

Trading Principles for Newbie Traders on IQ Option

To be successful in every facet of life, having principles is a focal point. That said, trading on the IQ Option platform requires loads of patience as yielding dividends immediately after sign-up is a slow yet steady process.

Therefore, you'll need to engage select provisions to make trading across numerous financial instruments one seamless activity. 

Some crucial trading principles on IQ Option include:

  1. Never second-guess yourself. You're constantly evolving, and learning from your failures is essential.
  2. Only place trades you can afford to lose. Since financial instruments are highly volatile, you might want to make buy-ins that aren't astronomic.
  3. Develop the virtue of discipline. Engage strategies that would safeguard you from making impulsive trades. 
  4. Always be patient. Although you might not make substantial financial steps at first, keep pushing, and you'll catch your big break someday.

Is Hedging a Profitable Strategy on IQ Option: Here's What You Need to Know

With so many strategies available for online trading, most users find it challenging to place trades using these techniques. One of those strategies is known as hedging. In the subsequent paragraphs, we'll be taking a deeper look into this IQ Option strategy.

The hedging strategy is commonly used in binary options traders to mitigate risks. Why? Binary options are financial instruments that involve pure speculation on the market direction of an asset. 

Since a wrong premise can lead to astronomic capital losses, investors don't want to lose out entirely, and that's why more traders are opting for hedging.

How does it work on binary options? Here, a trader would have to buy a different "call" and "put." On these options, the "put" price can be higher than the "call" price or vice versa. 

Consequently, when you employ hedging, the possibility of losing on both options is practically impossible. Why? If the market shifts from the call region to the put segment, you're going to make losses at the call and regain some form of profit on the put.

In summary, hedging is not only considered profitable but safe as you're bound to make positive dividends one way or the other. Although there's the possibility of making minimal losses, you should be able to cushion these trade negatives on your backup option. 

IQ Option Trend Reversal Strategy

The trend reversal strategy, in simple terms, involves trading opposite to observable market trends. That said, so many traders don't employ this strategy because they're filled with so many reservations. 

Why? There are stereotypes that this strategy isn't worthwhile. Taking a closer look, you might see reasons behind this notion as market directions are dependent on financial trends globally. So, making reverse trading decisions doesn't seem right.

However, it's pertinent to note that a select few traders employ this strategy and yield positives. If you see yourself as a risk-taker and you're willing to go the distance when the odds are unfavorable, read the following lines.

That said, an IQ Option trend reversal strategy might come in varying forms. The most notable? Uptrend reversals.

In an uptrend reversal, the market price of an asset might be turning towards higher swing highs and higher swing lows. Here, the trading path you take is solely your decision. Nevertheless, if you're not well versed with this term, it's advisable to make lesser trades while focusing on the highs and lows.

Trading With the Trend: When Can Traders Employ This IQ Option Strategy?

As a trader, you should know that market trends can be positive or negative. However, if you've spotted a trend that accentuates your trading needs, it's important to make concerted efforts to ensure that the trend yields positive results.

How? Once you've found an asset that you're willing to trade, you'll have to wait for prices to move towards the trendlines. Common scenarios on IQ Option are when the asset price moves close or through the trendlines. 

If any of these two instances occur, you should take a position immediately. To make profits, make trades when the price is moving towards the lower trendlines. When the expiry period reaches, you should get dividends. 

However, it's important to note that although trading with the trend might come off as an "easy peasy" activity when you're looking at the charts, keep in mind that changes can happen quickly. In some cases, a trend might be reversed suddenly and result in huge losses on your end.

Japanese Candlesticks: Why They're Considered the Backbone of IQ Option

At the IQ Option platform, one thing traders are bound to see is Japanese candlesticks. Although most traders might not pay too much attention to these visual elements, they're present on every IQ Option trade chart, and that's why candlesticks are considered a "backbone."

Japanese Candlesticks
Japanese Candlesticks

Why? Candlesticks give insights into future market trends and ranges. The period of development for a candlestick is between 5 seconds and a month. For context, a 5-second candle lasts for 5 seconds before another 5-second candlestick is formed.

On IQ Option, the colors of these candles might differ. For example, it can be green or orange. These colors help determine opening prices, closing prices, the lowest prices, and the highest prices of a particular trade period.

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