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CFD & Forex Trading at IQ Option
IQ Option is a broker for financial derivatives. The financial services provider has the advantage of having both CFD's and binary options in its portfolio. Traders can thus trade a variety of underlyings with different instruments. A look at the product range in the field of CFD's:
-Currencies: IQ Option offers a majority of the most popular respectively most traded currencies. These include primarily the euro, the US dollar, the Japanese yen and the British pound. In addition, some minor players such as the dollar currencies from Australia or Canada can be traded as well.
-Indices: Especially newcomers often trade based on indices because these underlyings are less volatile. Values like the FTSE100 or the Dax are tradable at IQ Option.
Raw Materials: Commodity trading is also very popular. Because prices tend to be very volatile, commodities offer relatively high return potential. However, sudden trend reversals can cause high losses as well.
-Shares: The product range is rounded off by shares. Most often traded are the values of large US corporations, which preferably come from the technology sector. Amazon, Netflix and Google are just three of many examples.
As usual with CFD trading, IQ Option always uses a lever. Put simply, investors can make disproportionately high transfers of both profits and losses of the underlying asset to their own trading account. If you trade with Forex, you can use a leverage factor of no more than 1: 300. For stocks, IQ Option slightly reduces the lever to 1:50.
>>Binary Options As An Aternative To CFD's<<
In addition to CFD's, IQ Option traders can use another financial derivative to generate high returns, especially in the short term: binary options. The odds are even better – according to the company – than with CFD trading because IQ Option offers thousands of options.
Trading is usually done via a classic put or call option. An example:
The trader expects that the price of the Tesla share will develop positively in the coming hours.
For this reason, he invests 100 euros in the position and sets the duration of the option to 1 hour.
After the expiration of this hour he will be billed. If the trader is correct in his assessment, he will receive a predetermined return. If the option does not end up in the money, the entire capital investment is lost.
This trading variant is therefore quite transparent. Usual returns on IQ Option range between 75 and 80 percent. In the example above, the trader could have generated a profit of 75 to 80 euros within one hour.
Cryptocurrencies On Offer
So far, cryptocurrencies, which are also on offer at IQ Option, have not been mentioned. They are particularly popular among investors, especially because of the hype surrounding Bitcoin, which started in late 2016 – and has not gone down yet. Within a short time, traders were able to generate enormously high returns with the crypto currencies, especially in CFD trading. However, because the digital currency has developed in a volatile manner, strong consolidations happened regularly.
IQ Option's product range in this area is significantly larger than that of most competitors. Traders can trade as many as twelve cryptocurrencies, including the following:
-Bitcoin
-Bitcoin Cash
-Ethereum
-Litecoin
-Ripple
These currencies are traded by CFD's, with the maximum leverage at 1:25. Otherwise, the risk of trading the currencies which are prone to volatile developments would be too high for traders. Nevertheless, it is also possible to generate enormously attractive returns.
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