IQ Option Forex trading stands for buying and selling currency pairs, i.e., trading one currency against another. The difference between the buying and selling price will be your profit or loss, depending on your performance.
If you’d like to trade Forex, this IQ Option tutorial will get things straight for you: from the very basics to the actual steps on the platform.
- Understand currency pairs
IQ Option offers over 20 Forex pairs. A currency pair shows which type of currency is being traded for another. The currency that comes first in the pair (for example, EUR in EUR/USD pair) is called the base currency. It represents how much of the second (quote) currency is needed to get one unit of the base currency.
|For example, EUR/USD reflects how many US Dollars it takes to purchase 1 Euro. The quotation EUR/USD = 1.2500 means that one euro is exchanged for 1.2500 U.S. dollars.|
Categories of currency pairs
|Description||Include 7 most-traded pairs and have USD either as the base or the quote currency.||Pairs that don’t include the US Dollar.||Include pairing the U.S. dollar with the Canadian, Australian, and New Zealand dollar (CAD AUD NZD). They are called “commodities” because these currencies are sensitive to the prices of commodities.||Composed of a major currency with a currency of a developing economy.|
|Examples of currency pairs||EUR/USD|
Need a hint on which currency pairs to trade? Check out the article on the best-performing Forex pairs of 2021.
- Register and verify your account
If you are not an IQ Option client yet, you’ll need to complete a quick registration process. To register, use your email address or social login.
The demo trading will be available right after registration. However, if you want to make real trades on the real market, you’ll be asked to provide some documents to verify your account. Check out the article on verification to successfully complete the process and unlock the full functionality of the IQ Option platform.
- Top up your account
Once your account is all set, it’s time to deposit money and give your first Forex deal a try. Deposits at IQ Option are commission-free and start from $10 or an equivalent in your account currency.
To make a deposit, press the Deposit button in the upper right corner of the Traderoom, select a payment method, specify the amount, and press Continue.
For more details, read our step-by-step guide on deposits.
- Choose the right time to trade
Why is timing important? Because the Forex market operates in different trading sessions that depend on the time zones. Forex trading dynamics and volatility may vary depending on the time you tune in.
Traders differentiate between 4 trading sessions: Pacific, Asian, European, and American. For example, if you start your trading day between 1pm and 10pm GMT+1, you’ll be right in for the American session when USD and CAD are traded. So, it’s recommended to mind the timing depending on the currency pairs you trade. For more information about choosing the best time to trade, check out our article.
How to open a Forex trade?
Now that you’re all set to start, let’s walk through the IQ Option Forex trading process.
- Choose a currency pair
In the Traderoom, click on the + button and go to the Forex tab. Select a desired asset from the list.
- Specify the investment amount
On the panel on the right, choose the amount you’d like to invest. It can be as little as $1.
- Select the multiplier
If you’d like to trade with more money than you have on hand, feel free to use the Multiplier (aka leverage) feature. With IQ Option Forex trading, the multiplier can go as high as x1000, meaning that you can operate up to x1000 more money than you actually invested.
To choose the multiplier for your position, click Multiplier and select one of the suggested options from the list. Note that the higher the multiplier, the higher the risk: using it would increase not only your potential profit but also your potential loss.
- Manage risks
One important thing to do before placing a trade is to use the Auto Close feature. This implies setting up the Take-Profit and Stop-Loss levels. Thanks to this, your position will be closed automatically once it reaches the acceptable level of loss or a desired level of profit.
You can also use the Trailing Stop feature — it will automatically shift your loss limit in case the price is moving in the desired direction. On top of that, you can use your balance to keep the position open. In this case, the system will keep your position live even when the loss reaches 95% and hits the autoclose level. This is an option in case there are indications to assume that the price will reverse soon, even though the deal is already out of money.
- Press Buy or Sell
Now when you’re all set, it’s time to open a trade. Press the Buy or Sell button depending on your trading strategy and prognosis.
Now, all you need to do is wait. You can leave the trade hanging until it’s closed automatically at the Stop-Loss or Take-Profit level or close it manually by pressing the Close button in the upper right corner.
Forex traders’ profit potential isn’t limited: the further the market moves in your direction, the more you earn. You can boost your gain even further if you trade with the multiplier, which might mean profits exceeding 100%. It’s the same about the potential loss though: the further the market goes against you and the higher the multiplier, the bigger the loss.
If your trade worked out well, your profit will be displayed on the chart and reflected in the Trading History section. You’ll see the profit amount added to your balance in the upper right.
There is no expiration date for Forex positions. However, if you want to keep one open overnight, be ready to pay a little overnight fee. You can check the overnight funding conditions in the Asset Info section (more on it below).
How to use Forex analysis tools?
Before placing a trade, analyze the assets’ performance. This is crucial to decide on the type of order and improve your chances for the desired outcome.
First, go to the Info section under the asset title.
The Information section contains a full overview of the asset: price rate and change for 1 minute, 1 hour, 1 day, 1 month, and 1 year, traders’ sentiment displaying what other traders think of the price movement, and the basic description. Trading schedule, all the commissions, and spread info are available from the Trading Conditions section.
In the News section you can find the asset-related news gathered from reliable sources and updated in real time. For more info on what can affect the price, go to the Economic Events section. If you are interested in technical analysis, find useful insights on pivots and popular indicators in the Technical Analysis section.
Technical analysis tools
Technical analysis involves taking into account the past performance of an asset to predict its future behavior. With the help of technical indicators, traders can conclude where the price will go and open a trade in the corresponding direction.
IQ Option offers over 100 indicators to perform technical analysis. Moving Average, MACD, and RSI are some of the most popular ones for Forex trading. To apply them on the chart, click on the Indicators icon in the bottom left corner of the Traderoom and select the desired indicator from the list.
To request a withdrawal, click on the user icon at the upper right and select the Withdraw Funds option.
The minimum withdrawal amount is $2 or an equivalent in your account currency. Each trader is eligible for 1 free withdrawal per month. If you’d like to cash out more often, you’ll have to pay a 2% fee, yet no more than $30. Normally, the request is processed within 1-3 days.
For more information on how to cash out at IQ Option, check our complete withdrawal guide.
IQ Option gives a 360° trading experience, be it Forex, stocks, commodities, or other instruments. Its smart interface makes the process intuitive and allows the application of multiple analysis and risk management tools. Learn more about the Forex trading process and enter the global market with ease, from the comfort of your home.