The main factors that lead traders to IQ Option, are the convenience of the trading platform, a wide range of bonuses and a Deposit of ten dollars. It is difficult to part with your money at a higher Deposit when you start to try your hand at an unfamiliar platform. You can read our IQ Option review here.
We should understand that it will not be able to trade profitably and confidently with a minimum Deposit. $50-100 will allow you to test the best trading strategies on IQ option for beginners and get invaluable experience. Do not forget about the demo account, you can open it for free, with a balance of $1000 and possibility to replenish.
How to trade on IQ Option
Hedge is perhaps the best trading tactics for beginners. The point of the system is to minimize the risks and losses of the trader. This is achieved by trying to “to cage the course up” in order to maximize profits.
The trader’s tactic is to purchase a pair of looking at each other binary options with a big gap. The size of the gap is important: if it is large, the chance of course disappearance from the cage is minimal.
The trader acquires the asset to increase, then, with the right tear – down. Actions can also be performed in reverse order. It all depends on the current situation in the market (whether is fiat or trend traded now). It can be acted in reverse order. It all depends on the current situation in the market, which is now trading flat or trend.
We recommend to trade IQ option with an expiration period of 5-15 minutes, this is the optimal time for the price to pass a sufficient number of points from the first open transaction to the second.
Example of profitable Hedge trading:
Determine the direction of the price movement, in the example on the 5 minute graph-the price increases. The initial option was opened for a fall, the second for growth-the price is caged. It is possible to work inversely. Our tests show it is more preferable to open the first position on a trend, and the second against.
This strategy for IQ option is based on the market observation and the statement – “the price can not constantly rise or fall.” After a number of points up (down) there will be a correction in the opposite direction.
In the example, the price of binary options is four hundred dollars with a yield (with a positive forecast of 88%). The sum of $ 800 is total investment, in the case of caging the course up the trader receives a top 754 dollar net income ($352 per option).
If the rate goes out of the cage, the losses can make the difference: $ 400 (bet on losing positions) minus $352 (profit on winning the deal) = $48. In the end, it is better than to acquire one or a pair of options of the same direction, where the losses will be much greater.
An example of a failed transaction according to Hedge system:
-The strategy’s benefits:
-Double profit, 75-80% of winning trades;
-Minimum loss in case of negative forecast;
– Slow deals (5-15 minutes);
It is recommended for beginners.
Scalping and pullbacks
Scalping is another kind of IQ option trading strategy. This trading system is based not so much on the graph analysis as on the speed of the trader’s reaction. Unlike the Hedge system, Scalping is used on turbo options or binary options before expiration.
The essence of the tactics is to open a deal on the trend in case of a sharp change in the rate against the trend. The risks are clearly visible, because the course may not move back, but continue its direction. It is necessary to monitor the price movement working with this system. If there are no news and other messages affecting the asset on the market, the system will work. This strategy can be difficult for beginners because of involving analysis (fundamental and technical) on the part of the trader. Many factors should be taken into account.
Trading in IQ option on rollbacks
The system requires fundamental analysis on the part of the trader. During the flat period, the asset price moves in a narrow range. But as soon as there is news (positive or negative), the rate begins to fall or rise. The strategy is similar to Scalping: as soon as the rate begins to roll back — a temporary decline (with a trend growth) and Vice versa, you need to catch the moment and enter the market. A rollback is a movement against the trend (in the opposite direction), but with the next return to initial position. You can study the list of other strategies in the relevant section of our website.
Standard 15-20 minutes strategies in IQ option have some advantages over turbo options. If an advanced user wants to help beginner he will always recommend trading on low options there is no point to start with turbo trades immediately. They are complex in terms of determining the direction of the trend, and as a consequence, it is not always possible to predict the result. The best traders use 10-30 minutes deals the number of unprofitable options will be less, and trading will be systematic and comfort.