The IQ Option Binary App has been Waiting for
Exploring the IQ Option Binary Trading App Possibilities
With the speed of the online market at the moment, traders around the world can invest in an increasing number of assets and stocks. This global freedom is aided by top of the range platforms that provide this high level of trading. Better and better systems that allow traders to not only execute trades around the world but also keep up to date with any changes in the market and capitalise immediately.
One side of this growing market is that of binary trading apps and the associated form of trading. Known as binary trading, due to the fact that there are only two possible outcomes, this form of trade has seen a rapid increase in popularity recently. There are several reasons for this surge in traders around the world, and the best way to understand this is to understand just how these trades work.
To explore these binary trades properly, traders will require a platform that can support these trades and ideally one that can provide more than just the basics. This is where we turn to the top binary trading IQ Option.
This online platform offers traders access to an expansive market, with a well-developed binary trading section. Here they can learn about the trades, explore the different options within and get started right away. Let us look closer at what this all entails.
Let’s Begin Binary Trading
There are a number of simple steps involved in binary trades, all neatly laid out across the IQ Option platform. To start out, it is important to remember again that these trades involve only two possible outcomes, a win or a loss. The way this works is through traders trying to predict the direction a certain stock is going to move, relative to a certain time frame. Once the time has run out, the results are determined.
Let us run through a scenario. To begin with, traders will select the drop-down menu on the IQ Option platform that has the available trades. Beneath the more common trades there is the Options tab. This will direct the traders to a unique interface designed for binary trading.
There are many available securities to trade with on this platform, each with a different spread and unique market behaviour. Some of the more popular of these are the currency options, which pit different currencies against each other, and traders make their prediction relative to these.
Whichever market traders decide to enter, there is going to be risks involved. These are real world scenarios and anything can happen in the real world. Once the market for the binary trades are chosen, the next step is to determine the time frame. This makes a big difference to not just the possible outcome but also the return available. The time frames offered on this platform run from as low as just 60 seconds, to up to a whole month.
The reason the time frame is important is it determines the termination of the trade. Once the time has been reached, the current price of the chosen stock is noted and marked against the starting price, also known as the strike price. The result is either higher or lower than the initial price, with these being the available binary options.
So, once the time frame has been determined, traders can make their investment. This is the amount that will determine the return made from this trade. With IQ Option the starting deposit is just $10, while the lowest available investment on the platform is as little as just $1.
This means traders can put in $1 or pretty much any amount above this. Coupled with the chosen time frame, this will provide an estimated winning outcome and profit. This amount will be displayed neatly alongside the other relevant details.
With binary trading the amount made is a percentage of the initial investment, up to a maximum of 95%. This means that if the correct prediction is made, then the return is the initial investment plus the 95% of that initial investment. Of course, if the trader makes the wrong prediction then they will lose the initial investment they make.
Once the investment amount has been set, along with the time frame, then the only step left is to make the final decision. These are indicated by the large green and red buttons on the IQ Option binary app platform. The first one is the green button labelled ‘call’. This predicts that the invested stock is going to grow, relative to the starting position as of placing the investment.
The alternative red button, labelled ‘put’, predicts that the stock will fall, again in relative terms. Once the time frame is up, the position of the stock is checked against the strike price and a verdict is made.
Getting the Most Out of Strategy
Since traders are investing against the real stock market, there is a direct cause for strategic approach. The more information they can gather, the better they are able to predict the outcomes of these trades.
What makes IQ Option special in this regard is that they do not profit off traders making trades but rather only if they should make a profit. This is unique versus other platforms and shifts the responsibility of this platform toward actually helping their traders win as much as possible.
In this pursuit there are a number of available tools to help develop a trading strategy. To begin with, there is the way the platform displays the markets. With a highly flexible charting system, traders can breakdown the changes in particular stocks, based on specified time frames, and analyse even the smallest changes in the market. Using other graphing tools along the way to ensure that these predictions are well-informed.
On top of this, there is a comprehensive, free demo account available with IQ Option that offers a replenishable dummy account with $10 000 to practice with and learn the ropes of binary trading and the market in general. This takes away any of the insecurity about getting the hang of these forms of trades.
To help strategy further, there is a news page that provides key notes on any market related changes. At a glance, traders can deduce instant changes happening in the market and act accordingly. When it comes to trading at these speeds, timing is everything. Being able to act faster than the market can be the difference between winning and losing. This is even further helped by the layout of this trading app, providing ways of sorting and filtering assets to determine which are the best for investment.
Alternatives to Binary Trading
As has been mentioned already, the binary app IQ Option provides traders with a platform that can not only accommodate a wide range of binary trades but also offers other similar options for a bit of diversity. The primary trading option we are referring to here is the digital option. In that same drop-down menu that traders will find the binary options, there is the digital option.
This is notable because it shares many similar qualities to that of the binary trades, only there is an additional factor that changes it into something different. This factor is determined by the difference between the ending price of the chosen stock and the starting price, or strike price.
With a reduced time frame, up to a maximum of just 15 minutes, the digital option carries with it some additional risks, but at the same time, an increased potential to earn. Like with the binary trades, there are still the two options to either ‘call’ or ‘put’ and predict whether the price will go up or down respectively. Also, like this trade, if the trader predicts incorrectly then they lose their initial investment.
However, if the prediction is correct, then the end price of the stock is matched to the strike price and the difference decides the return. This can be up to an impressive 900% of the initial investment. Compared to the maximum 95% return on investment that the standard binary option entails, this is pretty appealing. Of course, the greater risk is that this final return is subject to the actual difference, not just if the price is higher or lower.
This makes binary options better for those stocks that see a minimal spread, while digital can benefit from a more unpredictable stock, whilst increasing the total risks involved. Either way, there are several options for traders to experience the market and on top of this, learn how it works, to better improve any investments going forward.