The Relative Strength Index indicator (RSI)

How does RSI work?

The RSI indicator defines trend strength and the probability of trend reversal. It is calculated in the following way: the sum of price growth for a given period is divided by the sum of the price decrease.





The indicator puts the resulting data on a scale from zero percent to 100 percent. Thus if all candlesticks on the given period are green then the indicator value is 100 percent. If red it equals 0 percent.

Period and overbought/oversold areas

Period is a candlestick quantity used for data collecting. It is set in the indicator settings and equals 14 by default.





Overbought and oversold values are also set there and equals 70 percent and 30 percent by default respectively. If the overbought value gets closer to 100 percent while the oversold value gets closer to 0 percent then the signals become more precise. Although their quantity decreases.




Using Relative Strength Index

If the RSI indicator intersects on a higher level it means an overbought case. When prices are increasing too high and fast and soon they are expected to decrease. If the indicator intersects on a lower border it means an oversold case where prices are getting too low too fast and they are expected to increase.





We encourage you to read about divergences on RSI. It’s an interesting way of using Relative Strength Index on IQ Option platform.

We wish you successful trading with our Binary Trading Option

Guide to Trading the Railway Tracks Candles Pattern on IQ Option

There are many different types of candle patterns. For price action traders, the tweezers tops and tweezers bottom candles are among the most important type. These candles have a solid body with a wick at the top or bottom. They often come in handy when you want to spot a trend reversal especially if you love holding long positions.

In this guide, you’ll learn about the railway tracks candle pattern and how to use it to trade on IQ Option.

Overview of the railway tracks candles pattern

For this pattern to develop there are three conditions that must be met.

The first condition is that it’s created by a pair of candles. The second condition is that both candles must be of the same or almost the same length making them look like railway tracks (notice the candles above).

The third condition is that the two candles must be different. If the first is bullish, the second must be bearish.

One of the cool things about this pattern is that it’s very easy to spot. The reason being is that they usually occur when the trend is exhausted and about to reverse. So if you’ve been watching a trend run over a period of time, watch out for this pattern, it’s usually a signal that the trend is about to reverse.

How to trade using the railway tracks pattern on IQ Option

Railway tracks pattern appears at peak of uptrend

If the trend has been up for a while, the railway tracks will likely appear at the peak meaning a reversal will occur. Immediately the bearish candle starts forming, get into a sell position.

Railway tracks pattern occur at the bottom of a downtrend

In the chart above, you’ll notice that the two candles aren’t exactly the same size. However, their lows are at the same level making them good candidates for a railway tracks pattern. This is simply a signal that the trend is about to reverse and go bullish.

When does the railway tracks candles pattern work best?

If you look at both charts, the new trend doesn’t quite develop for a while. It therefore pays to get into long positions lasting more than 15 minutes if you’re Binary Trading Option on IQ Option.

This pattern also works when the markets have clear trends.

Now that you’ve learned about the railway tracks candles pattern and how to use it on IQ Option, it’s time to try it out. Open an IQ Option practice account today and use this pattern.

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

All non-options instruments share the Best Trading Platform 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 CFD on

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

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).

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.



Forex overview


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


Binary Trading Option 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.

Overview guide of the profitable Introducing Brokers world

Overview of Introducing Brokers

Options brokers will run marketing campaigns both online and offline to gain new clients. The success of these marketing campaigns largely depends on their targeted regions and the popularity of the platform.


However, marketing campaigns are now treated with suspicion given the dozens of scam platforms popping up each year.


That’s where IBs come in.


Introducing Broker acts as an affiliate partner to the broker. Their primary job is to refer new traders to a particular broker. In return, the broker agrees to pay the IB a commission for each new trader that opens an account and transacts with real money on the platform.

Let me use a familiar example to explain the IBs role. In real estate, there are the real estate owners who seek out the services of real estate brokers.

The brokers in turn employ a network of well connected individuals who act as referrals. These individual’s job is to find people or organizations who might be interested in purchasing real estate.


If the referral buys the real estate, the owner pays the broker their commission. The broker in turn shares a portion of this commission with the individual who referred the buyer.


Two types of IB


Like real estate referrers, introducing brokers are of two types.


The first type is the one that’s out to make money from you. They know nothing about binary trading option and will do anything to convince you to join a specific platform.


Many aren’t traders. Their primary weapon is strong marketing skills.


They know that beginner traders want to make money fast so they’ll sell options as a simple way to achieve financial freedom.


Some will go to the extent of giving away free signals on condition that you first join the broker platform they recommend.

The second type of IB will provide you with all the knowledge you need to decide whether to join a particular platform or not. Many of these are active traders and love sharing their knowledge with fellow traders.


A good number of these IBs genuinely want you to trade successfully. They’re willing to put their reputation on the line and will regularly provide tips and guides on how to trade better.


They know that as long as their referrals keep trading and making money, so will they.


How do IBs make commissions?

Every trading platform has their commission model. Some of the popular models include the following:


Types of commission models


Commission paid for every new trader that signs up and starts trading (one time commission).


Commissions paid on total volume traded by traders referred (recurring commission).


Commissions paid out based on the losses referred traders incur (although no supporting evidence is available).


Bonus commissions if IB refers a huge number of traders or, referred traders trade a huge volume.

Now, you can see that all commission models offer a lucrative earning opportunity for IBs. That’s why many are opting to provide quality information to new traders. If a referral opens an account and becomes successful, it means that the IB can make recurring commissions based on volume.


However, there’s still a small group that’s out to squeeze every penny out of your pocket. They know that the more trades you make, the bigger the volume and therefore their commissions check. This group will usually advocate trading 30 second or 60 second options. Whether you win or lose, their main objective is to make money from you.


How do you distinguish between good and bad IBs?



An easy way to distinguish between good and bad IBs is to look at the information they provide on their websites. How knowledgeable are they about the platform they’re promoting? How knowledgeable are they about trading the different markets provided by the platform they’re promoting?



Good IBs will provide tons of knowledge regarding the platforms they promote. This knowledge ranges from trading using different strategies to contacting the platforms support team. In addition, this information is provided freely.



Bad IBs on the other hand are more secretive. Some will go to the extent of giving you access to information and signals only if you register an account with the broker they’re promoting.


However, both good and bad introducing brokers use a similar approach to attract new traders.


Approach used by IBs to attract new traders


For introducing brokers, every new trader counts. It’s a new revenue stream. Their approach to attract new traders is therefore quite similar. It involves 3 steps.


Friendly and approachable demeanor


Come across as knowledgeable and expert trader often showing off winning trades


Promise trader IB is best teacher that will make him money


Recommend a specific broker

This is what you see on their websites. But what happens behind the scenes is what separates the good IBs from the bad bunch.


Bad IBs use their websites to essentially identify new traders who are slightly interested in trading. Once you send them an email or comment, they’ll use every marketing trick to get you to sign up with their preferred broker.


Some of the promises you can expect to get include personalized training to ensure all your trades win, daily trading signals or even free trading cash. But these will only be awarded if you open a trading account. Once you’ve opened an account, the IB simply goes silent and moves on to find the next trader to recruit.


In reality, it’s difficult to know whether to trust an IB or not. But there are some things you can do in order to identify which IB to trust or not.


What to do to identify trustworthy IBs


What markets does the introducing broker recommend?


Traditionally introducing brokers will usually recommend forex markets. But with the growth of new markets such as options, they will also recommend these. If an IB recommends options, look at the trading time frame they recommend you trade.



It’s no secret that 30 second and 60 second time frames could earn you money faster than 5 minute or more time frames. But they could also lose you money faster. And the more your trade, the larger our volume becomes ensuring that the IB makes a commission.



If an IB recommends trading shorter time frames, this should be a red flag. They’re only after commissions generated from your trading volume.



What money management strategy does the IB recommend?



Money management plays a very crucial role in the success of every trader. There are many money management strategies you can use.



If an IB shares a money management strategy, consider the risk it places on your account balance. That is, does the money management strategy focus on making profit or protecting your account?


Some strategies such as the Martingale are high risk-reward. It recommends you increase your trading amount every time you incur a loss.


However, even if we recommend using it, we only advise experienced traders to try it out. For beginner traders, we’ll only recommend you try it out on your IQ Option practice account before trading real money with it.


How many trades per session does the IB recommend?


Unless you’re an experienced trader, you should trade one financial instrument using one trading strategy. You should also limit your daily trades to 10 or less. In addition, you should enter 1 position at a time using a predetermined money management strategy.


If an IB recommends you open several simultaneous trades (to take advantage of the markets), their objective it to have you increase trading volume. This in turn will ensure that they earn their commissions.



Does the IB explain how they make thousands of dollars trading?



Most IBs will not shy away from claiming to have made thousands of dollars trading. They will also provide snapshots of their account balances. However, majority won’t give you the markets, dates and strategies they used to make huge profits.


This marketing gimmick is meant to make you believe that if they can do it, so can you. But trading isn’t just about making your deposit and blindly trading. It involves use of specific strategies in specific market conditions.


If you come across an IB making such claims, don’t shy away from asking about their strategy. If they cannot provide it, it’s likely that their claims are also false.

Most genuine IBs will document their strategies in guides explaining each trade as it went down. They’re also willing to provide information to would be traders when requested for.

Claims to have taught traders who ended up millionaires


Many IBs will claim to have taught students who ended up millionaires. The problem is, they will also claim that due to some legal agreements, they cannot disclose their student’s identities. This IB will further claim that you could join their select group of millionaire students if you join their recommended platform. This should be a red flag. The IB probably made their millions from commissions earned through referring new students.


This however doesn’t mean that all introducing brokers are out to make money from new traders. It simply means that you must be careful before trusting an IBs word and joining an options platform they recommend.Take time to research both the IB and the platform they’re recommending before making your first deposit.

That’s the world of introducing brokers. I hope you’ve learned something from this guide.

Have you joined a platform recommended by an IB? How did our relationship with the IB fair after you joined the platform? Share your views in the comments section below.

Overview guide of the profitable Introducing Brokers world

Overview of Introducing Brokers



Options brokers will run marketing campaigns both online and offline to gain new clients. The success of these marketing campaigns largely depends on their targeted regions and the popularity of the platform.



However, marketing campaigns are now treated with suspicion given the dozens of scam platforms popping up each year.



That’s where IBs come in.



Introducing Broker acts as an affiliate partner to the broker. Their primary job is to refer new traders to a particular broker. In return, the broker agrees to pay the IB a commission for each new trader that opens an account and transacts with real money on the platform.



Let me use a familiar example to explain the IBs role. In real estate, there are the real estate owners who seek out the services of real estate brokers.



The brokers in turn employ a network of well connected individuals who act as referrals. These individual’s job is to find people or organizations who might be interested in purchasing real estate.



If the referral buys the real estate, the owner pays the broker their commission. The broker in turn shares a portion of this commission with the individual who referred the buyer.



Two types of IB



Like real estate referrers, introducing brokers are of two types.



The first type is the one that’s out to make money from you. They know nothing about binary trading option and will do anything to convince you to join a specific platform.



Many aren’t traders. Their primary weapon is strong marketing skills.



They know that beginner traders want to make money fast so they’ll sell options as a simple way to achieve financial freedom.



Some will go to the extent of giving away free signals on condition that you first join the broker platform they recommend.


The second type of IB will provide you with all the knowledge you need to decide whether to join a particular platform or not. Many of these are active traders and love sharing their knowledge with fellow traders.



A good number of these IBs genuinely want you to trade successfully. They’re willing to put their reputation on the line and will regularly provide tips and guides on how to trade better.



They know that as long as their referrals keep trading and making money, so will they.



How do IBs make commissions?



Every trading platform has their commission model. Some of the popular models include the following:


Types of commission models



Commission paid for every new trader that signs up and starts trading (one time commission).



Commissions paid on total volume traded by traders referred (recurring commission).



Commissions paid out based on the losses referred traders incur (although no supporting evidence is available).



Bonus commissions if IB refers a huge number of traders or, referred traders trade a huge volume.



Now, you can see that all commission models offer a lucrative earning opportunity for IBs. That’s why many are opting to provide quality information to new traders. If a referral opens an account and becomes successful, it means that the IB can make recurring commissions based on volume.



However, there’s still a small group that’s out to squeeze every penny out of your pocket. They know that the more trades you make, the bigger the volume and therefore their commissions check. This group will usually advocate trading 30 second or 60 second options. Whether you win or lose, their main objective is to make money from you.


How do you distinguish between good and bad IBs?



An easy way to distinguish between good and bad IBs is to look at the information they provide on their websites. How knowledgeable are they about the platform they’re promoting? How knowledgeable are they about trading the different markets provided by the platform they’re promoting?



Good IBs will provide tons of knowledge regarding the platforms they promote. This knowledge ranges from trading using different strategies to contacting the platforms support team. In addition, this information is provided freely.



Bad IBs on the other hand are more secretive. Some will go to the extent of giving you access to information and signals only if you register an account with the broker they’re promoting.



However, both good and bad introducing brokers use a similar approach to attract new traders.



Approach used by IBs to attract new traders



For introducing brokers, every new trader counts. It’s a new revenue stream. Their approach to attract new traders is therefore quite similar. It involves 3 steps.



Friendly and approachable demeanor



Come across as knowledgeable and expert trader often showing off winning trades



Promise trader IB is best teacher that will make him money



Recommend a specific broker



This is what you see on their websites. But what happens behind the scenes is what separates the good IBs from the bad bunch.



Bad IBs use their websites to essentially identify new traders who are slightly interested in trading. Once you send them an email or comment, they’ll use every marketing trick to get you to sign up with their preferred broker.



Some of the promises you can expect to get include personalized training to ensure all your trades win, daily trading signals or even free trading cash. But these will only be awarded if you open a trading account. Once you’ve opened an account, the IB simply goes silent and moves on to find the next trader to recruit.



In reality, it’s difficult to know whether to trust an IB or not. But there are some things you can do in order to identify which IB to trust or not.


What to do to identify trustworthy IBs



What markets does the introducing broker recommend?



Traditionally introducing brokers will usually recommend forex markets. But with the growth of new markets such as options, they will also recommend these. If an IB recommends options, look at the trading time frame they recommend you trade.



It’s no secret that 30 second and 60 second time frames could earn you money faster than 5 minute or more time frames. But they could also lose you money faster. And the more your trade, the larger our volume becomes ensuring that the IB makes a commission.



If an IB recommends trading shorter time frames, this should be a red flag. They’re only after commissions generated from your trading volume.



What money management strategy does the IB recommend?



Money management plays a very crucial role in the success of every trader. There are many money management strategies you can use.



If an IB shares a money management strategy, consider the risk it places on your account balance. That is, does the money management strategy focus on making profit or protecting your account?



Some strategies such as the Martingale are high risk-reward. It recommends you increase your trading amount every time you incur a loss.



However, even if we recommend using it, we only advise experienced traders to try it out. For beginner traders, we’ll only recommend you try it out on your IQ Option practice account before trading real money with it.


How many trades per session does the IB recommend?



Unless you’re an experienced trader, you should trade one financial instrument using one trading strategy. You should also limit your daily trades to 10 or less. In addition, you should enter 1 position at a time using a predetermined money management strategy.



If an IB recommends you open several simultaneous trades (to take advantage of the markets), their objective it to have you increase trading volume. This in turn will ensure that they earn their commissions.



Does the IB explain how they make thousands of dollars trading?



Most IBs will not shy away from claiming to have made thousands of dollars trading. They will also provide snapshots of their account balances. However, majority won’t give you the markets, dates and strategies they used to make huge profits.



This marketing gimmick is meant to make you believe that if they can do it, so can you. But trading isn’t just about making your deposit and blindly trading. It involves use of specific strategies in specific market conditions.



If you come across an IB making such claims, don’t shy away from asking about their strategy. If they cannot provide it, it’s likely that their claims are also false.



Most genuine IBs will document their strategies in guides explaining each trade as it went down. They’re also willing to provide information to would be traders when requested for.



Claims to have taught traders who ended up millionaires



Many IBs will claim to have taught students who ended up millionaires. The problem is, they will also claim that due to some legal agreements, they cannot disclose their student’s identities. This IB will further claim that you could join their select group of millionaire students if you join their recommended platform. This should be a red flag. The IB probably made their millions from commissions earned through referring new students.


This however doesn’t mean that all introducing brokers are out to make money from new traders. It simply means that you must be careful before trusting an IBs word and joining an options platform they recommend.Take time to research both the IB and the platform they’re recommending before making your first deposit.


That’s the world of introducing brokers. I hope you’ve learned something from this guide.



Have you joined a platform recommended by an IB? How did our relationship with the IB fair after you joined the platform? Share your views in the comments section below.

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 you’re trading.




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 a Binary Trading Option 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.

Advice from IQ Option Traders Who Have Traded Just One Month

If you want to become a successful trader, getting your hands dirty and trading is necessary. For many new traders, they learn the hard way – losing lots of money. Some give up completely. Others decide to give it a try after doing further practice on the IQ Option practice account.

I usually give my guides and tips from experience gained in the trenches. This time round, I decided to give “beginner” traders the opportunity to take center stage. Each trader simply had to answer one question: What is the most important lesson you learned after Best Crypto Platform on IQ Option for one month? So I compiled the answers that were quite similar across all respondents. Here they are.


Most important lesson learned after trading 1 month
“Simply follow the price”
Many traders try to predict how the market will go. Sometimes, they’re lucky. However, in most cases they’re outright wrong. The market simply goes where it wants. The only way to know where is through the price.

In many of my guides, you’ll find that I usually recommend trade entry based on where the price is headed. If you see a green candle, it’s clearly going up so you must place a buy trade. If you try to go against the market you’ll only lose your money.

“Always know when you’ll exit your trade before placing an order”
Trade entry is as easy as clicking on the buy or sell button. But once this is done you stand to lose your investment. Before trade entry you must always determine what your exit point is.

For example, when trading options it might be a minute or more. Then determine whether the markets and indicators give you a signal that increases the probability that your trade will be a winner by the time it expires.

“Impatience and greed are two emotions that need to be in check”
Getting in the market and laughing your way to the bank hours later is a fantasy many new traders have. But it doesn’t work that way. You’ll find that most of your time is spent analyzing the markets for the right signals to appear.


Patiently analyze the markets for the right signals
Greed is probably the one emotion responsible for trading accounts being wiped out in a short amount of time. In an effort to make money faster, new traders (and experienced traders too) invest too much on a single trade.

I always recommend not trading more than 5% of your account balance on a single trade. If you have a string of losses, stop trading. Take time to analyze your strategy and the markets before trading again.

“Trade one market at a time”
Simply put, opening too many trades simultaneously increases your risk exposure. If most of these lose, you’ll lose a significant amount within a short amount of time.

“Trade longer time frames”
I usually recommend 5 minute or more time frames. This allows you to identify a trend and avoid price fluctuations that are occurring every millisecond. Longer time frames are also easier to analyze.

“Build your own trading strategy”
All successful traders have their own unique trading strategy. Creating your own strategy gives you the discipline of following it through and refining it when it seems not to work.

Conclusion
Trading for a month seems like a short amount of time to get some experience. However, if you’re serious about trading every single trade counts as a learning experience. What is the most important lesson you learned after trading on IQ Option for one month? I’d love to hear this in the comments section below.

Easy Guide for Registering a New IQ Option Account

IQ Option is one of the leading options of the best trading platform today. If you want to get into action and learn how it works, registering a new IQ Option account is the only way to do this. Start by visiting the IQ Option platform.

On the right side of the platform, there’s an account opening form.

Fill in your personal details and check the terms and conditions option. Then, click on the “Open an account for free button“.

Once this is done, IQ Option will send a verification link to the email address you’ve provided. Go to your email and click on this link. You will be redirected to the IQ Option platform where you can sign in for the first time. These steps will ensure that your new account is registered.

Register for an IQ Option account even faster

You can click on this link to get to the IQ Option registration page even faster. Simply follow the steps I’ve outlined above to get your new trading account. Note that this is the practice account.
What should you remember when opening a new IQ Option account

IQ Option doesn’t require you provide a lot of personal information during the registration process. However, you must provide real information especially if you intend to use the platform to make money in the future. If you want to become a professional options trader, you will need to verify you account later. This makes it easier to make deposits and withdrawals.

You will only need one email address to open both the practice and real accounts. So use your preferred email address during the registration process.

Recovering $10000 in your practice account

Your new account should come credited with $10000 virtual cash. I always recommend that you use it to trade like you would with real money. But if you love to take huge risks investing large amounts on single trades, you might find the account balance dwindle to under $2000.

So what do you do?

IQ Option allows you to recover the $10000 virtual cash so you can be able to continue trading. Here are the steps to follow.

On the top right of your account, click on the “deposit” button. Then, click on the “Top up” button on the practice account option.

After clicking on the “top up” option, IQ Option will automatically add $10000 virtual money to your account.

Use the practice account for several weeks and ensure that you’re trading profitably. Only then should you attempt to open a real account.

Have you opened a new IQ Option account? How did you find the process? Please share your thoughts in the comments section below.