Guide to the IQ Option Leaderboard

One of the ways to know whether an options trading platform is legit or not is by finding out if traders actually make money on it. It’s difficult tracking down traders and asking them whether they are making money trading. Most will actually avoid discussing their earnings with you.

IQ Option has a feature that solves both problems – the leaderboard. That’s what I’ll cover in this short guide.

What is the IQ Option leaderboard?
This is a unique feature that allows you to quickly view which traders have made the most money on the platform over a period of 1 week. The traders are arranged in descending order with the person with the most gross profit being ranked number 1.

Besides top traders, the leaderboard also allows you to see your current rank. That is, how your earnings compare with other traders’ earnings on the Bitcoin Trading Platform.

Viewing the IQ Option leaderboard
This feature is located on the left hand panel of your trading interface. Simply click on “Leaderboard” and a list of profitable traders will appear.

How to use the leaderboard

Find out your rank worldwide and in your country
Besides knowing how your profits compare to traders across the globe, you can also compare it against traders in your country. This can be done by clicking on the drop down field marked “Worldwide” and selecting “In your country”.

Find out which countries have the most profitable traders
Once you click on the “Worldwide” drop down, your country appears on the top. But you’ll also notice that the countries with the most profitable traders is ranked number 1 to 10. You can scroll down this list to find out what rank your country is. This list also helps you to know where the top traders on IQ Option come from.

Find out which assets the most profitable traders are currently trading
This is a small hack to identify which assets the most profitable traders are investing in at the moment. One of the skills successful traders have is identifying asset classes that can make profit within a short period of time.

To do this, simply hover your cursor over the specific trader. IQ Option will create a pop up that shows the trader’s name, gross profit, account type (if it’s VIP or not) and the asset they’re currently trading. Note that the trader might be trading on their practice account. But IQ Option will indicate this on the pop up.

Important things to remember when using the leaderboard
Note that the IQ Option leaderboard only shows gross profit. That is, the total of all profitable trades made. The losing trades aren’t taken into account meaning the earnings displayed might be slightly higher than the trader’s net profit.

Another thing worth noting is that you can still view the leaderboard even if you don’t have a real account. However, profits generated from the practice account aren’t considered. This means that only traders using real money accounts are listed on this feature.

That’s it about the IQ Option leaderboard. Head over to your IQ Option interface and use this feature to know how you rank among the world’s trading community.

Good luck in your trading!

Effectively Trading Candle Colors Alongside the Martingale System

Trading based on candle colors is one of the easiest strategies you’ll come across. It’s a low risk strategy. The reason for this is that your main objective is identifying a real candle (with large body) and placing your trade based on its color.

Candles with large bodies indicate strong price momentum in a specific direction. For example, a large green candle shows a strong uptrend. Therefore, placing a buy position after the green candle closes is very likely to result in a winning position.

In this guide, I’ll trade 5 minute interval candles for the EUR/USD currency pair. I’ll also use the Martingale money management strategy to ensure that each trading session ends up profitable.

Guidelines for trading candle colors on IQ Option
If you don’t know much about the Martingale system, the Is the Martingale Strategy Suitable for Money Management in Options Trading? will get you started.

I’ve also created the Ultimate Guide for Trading Candles on IQ Option to help you learn more about Best crypto platform candles on IQ Option.

But for purposes of this guide, I’ll go through the rules to follow when trading.

Once I identify a real candle, I’ll wait until its close. Then I’ll enter a trading position based on this candle color. For example, if I find a bearish candle, I’ll wait until it closes. I’ll immediately enter a 5 minute sell position meaning the next candle will close lower.

But what if the trade loses? As the candle closes, I’ll immediately enter the same position at the open of the next candle. I’ll continue doing this until I encounter a similar colored candle.

Another important rule I’ll observe is alternating between green and orange candles. If I enter a buy position that ends up profitable, my next step will be to wait until an orange candle develops. Then, I’ll enter a sell position.

Take a look at the chart below.



How the trades went
The markets were ranging and no apparent candle was developing. However, a solid bullish candle started developing. At its close, I immediately entered a 5 minute “higher” position. This trade ended up profitable.

The second trade didn’t go as expected. The first bearish candle signaled price consolidation rather than trend reversal. The first 5 minute “lower” trade wasn’t profitable. However, I immediately entered a “lower” position at the open of the next candle. This ended up profitable.

After waiting for a bearish candle to appear, it eventually showed up. At its close, I entered a 5 minute “higher” position. This resulted in a losing position. However, I entered a similar “higher” position at the open of the next candle. This trade ended up profitable.

The candles to avoid when trading using this strategy on IQ Option

As mentioned, the candles to look out for are true candles. These have large bodies and small or no wicks. The types of candles to avoid are special candles. These have small or no apparent bodies as well as long wicks. Some of these are included in the image below.

All trade entry points are at the open of the next candle. The trades should last 5 minutes.

With the Martingale money management strategy, I entered 5 trades in total. 2 resulted in losses. Below is a table explaining how the Martingale system works.

Trading candles alongside the Martingale system is effective but has little returns

Since I traded 5 times, my cumulative trade cost was $121. The second and fourth trade were unprofitable meaning I lost a total of $44. The cumulative profit for the three trades was $36.42.

This means that even though I made a profit, it was quite small compared to the total amount invested.

Trading candle colors alongside the Martingale system is a simple and low risk trading strategy. However, the low risk also comes with low profits as you’ve seen.

Now that you’ve learned how this strategy works, try it out today in your IQ Option practice account.

Good luck!

Trading on IQ Option Using the Simple but Effective Rules of 3 Candles

Many traders think that the most complicated strategy is the one that works best. However, from experience, simple strategies are the best. The reason being that you don’t need to rely on many different indicators to catch the perfect trade entry point. Besides working with too many indicators can draw you away from your primary objective – making money.

One of the simple and effective trading strategies I use is the rule of 3 candles. That’s my focus in this guide today.


What is the rule of 3 candles strategy?

This strategy is based on candle charts. So you won’t be using line or area charts when implementing it. If you’re new to different types of charts, take a look at these two articles:

Guide to the IQ Option Price Charts

Candle Stick Patterns You Will Come Across When Trading on the Best Trading Platform

The rule of 3 candles strategy uses 3 same-coloured candles that appear consecutively. Use the Japanese candlestick chart. In addition, these are full-bodied candles (or have relatively short shadows). The reason why we use 3 consecutive candlesticks is that they’re more accurate to read than special candles.

Now on the IQ Option platform, your first objective is to identify a trend. If it’s a downtrend, the candles will have red bodies. Uptrends will have candles with green bodies. Along with the trend, you’ll need to identify 3 consecutive candles of the same colour. Once you reach the third candle, your trade should be against the trend because the fourth candle in that sequence is likely to be of the opposite colour.


probability when tossing a coin

This strategy’s rules are similar to a coin toss. The first toss produces a 50/50 chance of either heads or tails. If the first toss is headed, the probability of the second toss resulting in heads drops to 25%.

The third toss resulting in heads further drops to 12.5%. As you continue tossing the coin, the probability keeps dropping. That’s how the rule of 3 candles works.

If you get 3 consecutive candles of the same colour, chances that the fourth will be of the same colour have dropped significantly. That’s why you should enter a trade betting on the opposite colour.

An example of how to apply the rule of 3 candles on IQ Option

You will be working with trends. So, it’s a matter of identifying which candles are dominating at a certain time (green for uptrends, red for downtrends). Ignore the price and only focus on the candle colour.

Now, similar to the coin toss, your objective is to predict the colour of the next candle. Since you don’t know exactly what it is, you’ll refer to the previous three candles. If the previous three are red, chances are that the next candle will be green. Take a look at the chart below.


rule of 3 candles in a live chart

Where to enter your trades: If you have 3 consecutive red candles, your trade entry point is at the end of a candle. That is right when the next candle is starting. As you might have guessed, you should place a higher trade. If there are 3 consecutive green candles, your lower order should come right after the third candle ends.

What if your trade loses? Enter the same order for the next candle. So if you have 4 consecutive green candles your trade entry point should be at the end of the fourth candle. Still, it should be a put order.

Tips for trading using the rule of 3 candles on IQ Option

Before implementing this strategy, you should first analyze the chart’s history. Do you see trends that apply to the 3 candles strategy. It also helps to know if there’s upcoming news or events which might affect your currency pair. If there’s any, avoid trading that pair.

Remember that you won’t be following the prices. Rather, it’s the candle colour. Your entry points should be right where the third candle ends and the fourth begins. This means just a few seconds to react.

You might be tempted to increase your trade amount after a losing trade. Doing so might be dangerous. What if the next trade loses? The best thing is to stop trading and analyze the chart looking for the next favourable 3 candle pattern.

Have you traded using the rule of 3 candles pattern? If so, share your experience in the comments section below.

Good luck!

6 Reasons Why Binary Options are Popular

Financial traders have a diverse range of markets to choose from. These includes forex, stocks, CFDs, indices cryptocurrencies and options. Binary options are relatively new compared to other financial instruments (except cryptocurrencies). However, many traders consider them high risk. Some will even label options trading the same as gambling.

The truth is, any form of financial trading involves risk. Money can be made or lost regardless of the type of financial instrument online trading platform.

As more traders realize this fact, they’re turning to options trading as a way to make money. Online options brokers are now attracting millions of traders from all over the globe.

But what’s making binary options so popular? Below are six reasons.

You can make money whether the markets are trending or not

Most financial markets will only make you money when the markets are trending. For example, if you’re trading stocks, you can only make money if the price goes up or falls relative to the strike price. In addition, the price change must be significant enough for you to make a good profit.

With options you can profit regardless of market direction

Binary options are much different. All you need to do is predict whether the price will be higher or lower after a certain amount of time. Since options have a fixed return, a small change such as 0.001 in the direction you predicted will earn you profits of up to 90%. This comes in handy when markets are ranging. That is, the asset’s prices are experiencing small price movements.

Investing in binary options doesn’t require a huge investment

One of the reasons why options brokers are increasingly becoming popular is the low deposits they require to get started. You can easily open an binary options trading account for as little as $5. In addition, you can open an options position with as little as $1. With returns of up to 90%, a $1 trade can make you $.90 within a short amount of time.

Assets such as stocks and cryptocurrencies bought in exchanges require a huge investment. For example, if you wished to buy Bitcoin, you would need to pay at least $5000 for a single coin. In addition, you don’t know whether the Bitcoin value will increase in the near future.

Binary options offer a fixed return

Another reason why binary options are so popular is that you know the potential profit even before you open your trading position. This is calculated as a percentage of the amount you invest in a trade. Most platforms offer returns ranging from 60% to 95%.

The return depends on the assets you’re trading and volatility. This means that returns on a particular asset will change during the day. Knowing this, you can easily choose to trade during sessions where your trading platform offers the highest returns. This ensures that even if your trades end up losing, you can easily recover these losses through several winning trades.

The profit you might earn when trading other financial instruments largely depends on the asset’s price movement. If the price moves further in the direction you predicted, the higher your profit and vise versa.

The maximum you can lose is the amount placed on a trade

In addition to knowing how much you can earn through profitable options trades, you also know how much you stand to lose even before you enter position. The maximum amount you can lose on an options trade is your trade investment. Some brokers such as IQ Option also allow you to exit trades before they expire.

If the trade was turning a profit, IQ Option will give you a portion of what you were to earn. If it was losing, a portion of your trade investment will be deducted. This is called profit after sale. For example, if you had invested $10 in a trade with 80% return and the trade goes your way, you might decide to exit before trade expiry.

In such a case, IQ Option could give you $3 to $5 as profit and keep the remainder. If the trade was losing and you decide to exit, IQ Option might deduct $3 to $8 from your initial investment. This allows you to avoid losing the whole $100 investment.

Loses are limited with options

When trading financial instruments such as forex and commodities, you stand to lose more than your trade investment. If the trade goes against you, your percentage losses might exceed 100%.

At this point, your broker will use your account balance to keep the trade open. That’s why it’s always advisable to use stop losses when trading such markets.

Trading options is easy to learn

Some traders will argue that options trading is hard. But this isn’t the case. Options traders will use the same charts, tools and trading strategies used by traders in other markets. In order to succeed as a binary options trader, you must learn how to read charts, use indicators, have a trading strategy and understand trading psychology. Traders in other markets must also do the same.

Learning options trading is easy

The interesting thing is that, traders who have experience in other markets such as forex often find options trading quite easy.

You can earn profit in as little as 1 minute

In most markets, you’ll have to wait until the underlying asset’s price reaches a predetermined strike price. This can take seconds, minutes, days or even weeks. Binary options are designed such that you can make profit in as little as 1 minute (Note: we don’t recommend trading short expiry times).

The reason for this is that options are set to expire after a specified period. In addition, all you need to predict is whether the price will be higher or lower than the strike price upon expiry.

That’s it about why binary options are popular. Do you have any additional reasons why we should trade option with IQ Option? Kindly share them in the comments section below.

Complete Beginners Guide to IQ Option Forex Trading

Many new traders will opt to try out options over other financial instruments. They’re easy to trade and offer a fixed profit return. Besides options, IQ Option also offers other financial instruments. Among these is forex which will be my focus in this guide today.


Online Trading Platform
The Foreign Exchange (Forex or fx) market is the largest in the world today with over $1 trillion being exchanged daily. This market involves exchanging different currencies.

The fx market developed as a result of trade and other financial transactions occurring between countries, institutions and individuals. For an fx transaction to occur, you must sell one currency to buy another or buy one currency by selling another. This means fx transactions involve currency pairs. For example, if you’re trading EUR/USD and 1.80086, it simply means that you can buy 1 Euro for 1.80086 US Dollars.

Where do forex prices come from?
Forex prices are usually determined by supply and demand. I use the term “usually” because there are other forces such as central banks, governments and even forex brokers who might manipulate forex prices.

But let’s stick to supply and demand. Each currency pair has a bid and ask price. The bid price is the amount someone is willing to sell the currency at a specific time. The asking price, on the other hand, is the amount someone is willing to pay for a particular currency at a specific time.

Now knowing who sets the prices isn’t that important for traders. Why?

Trading forex on IQ Option doesn’t require you actually own the currency you’re buying or selling. Your primary objective is knowing how to profit from buying and selling currency pairs.

I’ll cover this next.

How do you make money trading forex on IQ Option?
Trading forex involves buying and selling a currency pair. For example, if EUR/USD is trading at 1.1576/1.1578 it means that you can buy 1 EUR for $1.1576 or sell 1 EUR for $1.1578.

Now, if you decide to buy 1EUR for $1.1576 you’re hoping that its price will rise in the future allowing you to sell at a profit. Conversely, if you sell 1EUR for $1.1578, you’re hoping that the price will fall in the future allowing you to buy it back at a lower price.

The difference between your buying or selling price and the price at which you’ll buy or sell the currency for in the future will be your profit or loss.

So if you bought the EUR/SD pair at 1.1576 and the price rises to 1.1580, your profit would be $0.004.

That’s a small amount for most traders. But consider if you bought 100 lots. Your profit would be multiplied by 10000 earning you a profit of $40.

Note: A lot comprises 100 units. So if you bought 1 EUR/USD lot, it simply means you bought 100 EUR.

Who are you trading against in the forex market?
The forex market comprises dozens of different actors. Remember that the value of a currency is largely affected by its supply and demand. This means that when buying or selling a currency pair, you’re essentially competing against small actors such as independent traders. You’re also competing against big actors such as banks and governments.

But this shouldn’t be a cause for concern. No actor is big enough to control the forex markets, therefore, giving you an equal opportunity to make money as a small trader.

Forex vs Options markets
I’ve written the IQ Option Forex vs IQ Option Options Which is More Profitable?

This comprehensive guide will teach you more about the differences between these two markets. However, here’s a rundown of the 6 major differences you’ll encounter when trading forex on IQ Option.

Forex doesn’t have a set expiry time
When trading options, you’ll have to decide when the trade will expire. This can be as little as 1 minute or more than 1 month.

Forex, on the other hand, has no fixed expiry time. The trade is only exited if you manually close it, or if the price reaches a pre-set stop loss or take profit point. This means a trade can remain open for minutes, hours or even days.

Stop losses
The stop loss is a tool that’s used to limit the amount a forex trader can end up losing. For example, if you invest $100 in a trade, you can set your stop loss at 10%. This means that if the trade goes against you and your invested amount falls to $90, Iqoption will automatically close the trade.

When trading forex, losing trades can eat into your account balance. This means that if you invested $100, your losses can exceed this amount. Stop losses allow you to protect your account balance and limit losses on each trade.

Take profit
Take profit works the same way as the stop loss. There’s one major difference though. The take profit feature automatically closes the trade when a specific profit amount is reached.

For example, if you invest $100 and set your take profit at +$50, the trade will automatically close when a $50 profit is made.

This feature makes it easy to lock in and secure profits made on each trade. Imagine a trade where you had the opportunity to make $50 but the markets reversed. The profits you’d have earned start to dwindle simply because you didn’t take profits when the markets were favourable.

Leverage
IQ Option offers leverage to forex traders. What this simply means is that you are able to multiply the profitability of every trade. For example, if you trade using $100 and apply the leverage of X50, this essentially means you’re trading with $5000. In turn, the profits you make on your trade will be 50 times higher than if you had simply traded using $100.

Although leverage can be a great way to increase your profits, you should use it with caution. Always use it alongside other tools such as stop losses and take profit.


Trade exit
One thing that makes options trading easy is that trade exit is fixed. If you enter a 60-second options trade, you’re assured that you’ll know whether you’ve made a profit or not within 60 seconds.

Forex trading is a bit different. Trade exit is determined by one thing – price. Unless the price reaches your strike price, the trade will remain open. This means that it can take minutes, days or even weeks before the trade exits. You can however manually exit the trade if you want to on the IQ Option platform.

Many forex traders, therefore, choose to trade currency pairs where price fluctuations are likely to occur during a trading session. This way, they’re sure that their strike price (take profit or stop loss) are going to be hit at a specific point. So if you want to trade forex, it’s recommended that you trade when the currency pairs you invest in are likely to be affected by a news item.

Returns
Options traders will get a fixed return per trade. Forex traders, on the other hand, have the chance to earn returns exceeding 100%. The reason for this is that how much profit you make as a forex trader largely depends on how far the price moves. The further the price moves according to your prediction, the higher the profit potential.

Now couple this with leverage and you have the opportunity to make profits that can be as high as 500% or more. This makes forex trading a good way to make huge returns in the financial markets.

There’s a downside however, your losses can also be much higher than the amount you invest per trade especially if you’ve not set any stop losses.

Now that you’ve got a basic understanding of how the forex market works, your next step involves trading the forex markets. The Ultimate IQ Option Forex Trading Guide for Beginner Traders is a post you’ll want to read to get you started.