How to use an IQ Option account for binary options trading in Pakistan
Binary options trading is the financial instrument that appeared in the beginning of the XXI century.
People have different attitudes towards the instrument. Someone calls such trading gambling or betting while others regard binary options as the promising investing instrument.
What is a binary option?
Such options can be compared to certain agreements between two parties.
A trader is the first party while a broker performs the function of the second party. In other words, options can be called contracts.
Further price movement is the object of the contract. A trader indicates that a certain asset’s price will move either higher or lower. A broker accepts an obligation to pay a fixed amount of money when conditions of the contract are completely fulfilled.
A trader is free to pick up assets for trading: both fiat currency pairs and shares are suggested for trading. Moreover, the amount of investment is selected by traders themselves as well. For instance, you may start trading binary options Pakistan from just $1 while the minimal deposit amount is 10 USD only.
A fixed profit is expressed as a percentage of a trader’s investment therefore the more is invested the higher an expected profit becomes.
Let’s analyze an example to comprehend binary options functioning. A trader picks up a currency pair NZD/USD. The index is 0.63433 and a trader makes a prediction that in 5 minutes the index will increase. The prediction is based on technical analyses and certain important news. In 5 minutes the index is 0.63439. That means a prediction is correct and a trader obtains 76% of his initial investment. When a prediction is wrong, an investor loses his invested money.
Top-5 recommendations for newcomers before starting binary option trade
Starting binary options trading, newcomers frequently loss their money due to numerous reasons.
Lack of experience, emotions, wrong strategies and so on. The following recommendations help to minimize losses in such industry:
- There are no universal secrets and mechanisms. Looking through special literature or video tutorials, beginners may face to some ‘secrets’ that guarantee success. That’s false. Success consists of the following important components: professional knowledge, experience and a little bit fortune.
- Leave your emotions aside. Losses are frequently considered as something terrific and traders try to get their investment back. As a result, those users enjoy the benefits of none. Losses are positive as a trader gets lessons and is able to make analysis collecting trading experience. That’s even more important than successful deals.
- Follow your plan. Professional traders have always certain plans and strategies to follow them strictly. Thus, work out a plan even if your investments are just $1. What’s more important: a plan should be individual. Well, recommendations and experience of other users can be taken into account but don’t follow their way.
- Don’t mix strategies. Beginners frequently use all strategies they’ve found and such chaotic way lead to inevitable losses. Select some 2-3 strategies and understand them completely. Then test the strategies for different assets.
- Consider binary options trading as your second occupation. For instance, you are a engineer. Such occupation demands profound and continuous calculations and analysis while constructing different objects. Moreover, knowledge should be constantly renewed. The same concerns trading. The more professional you are the more successful your deals are expected to be.
A broker for binary options trading: why the choice is so important?
Traders are able to make deals on special platforms only therefore a reliable broker should be selected foremost.
Why a broker choice should be so careful?
There exist hundreds of binary options brokers but just some of them are truly reliable.
Reliable brokers protect your money and imply no problems with both funds depositing and withdrawal. Those brokers take care of their users making trading conditions as much convenient as possible. That includes numerous technological instruments, customer support, customized settings, etc.
For trading binary options, IQ Option platform suggests the best conditions and traders from all over the world have already appreciated it.
The main pros of selecting IQ Option platform for binary trading
Referring to the main advantages of our platform, the following pros should be taken into account:
- 46 different options are suggested for binary trading. Moreover, 8 more OTC instruments are offered for trading on weekends.
- A demo account is given automatically to prevent money losses. 10 000 virtual US dollars with unlimited ability of refilling are offered for all users.
- Understandable and convenient interface makes it possible to make deals quickly and then control your investment.
- Customer support is available around the clock, seven straight days per week.
- Informational support includes basic information about different assets, recent news, etc.
- Different chats are offered for sharing your predictions, opinions and advices.
- The platform is much quicker than analogues because of the recent technologies applying.
- Apps for different devices are suggested to make trading more convenient and accessible from any place of the Globe.
Thus, the platform makes everything to make trading conditions better and constantly keeps up with the times. IQ Option is included into a list of the best brokers being several times awarded for its constant progress and custom-friendliness.
Practice and real accounts for binary options trading
Getting an account on IQ Option is rather simple process.
Just visit our official website and select the most preferable way of registration: inserting necessary information, using Facebook profile or using Google profile. The registration takes just several minutes.
Every user gets two accounts for trading. A real account demands funds depositing ($10 is minimal investment) while a practice account can be used for free. No limitations exist. A trader gets 10 000 virtual USD and when the balance is less than $10 000 an account can be refilled any time you wish.
Referring to binary options demo account is the best solution to start with.
IQ Option practice accounts include no restrictions for users who are able to make acquaintance with the market. Moreover, this account helps to understand which strategies are effective for binary trading.
On the other hand, experts recommend using a demo account for a short period of time in order to start real trading as soon as possible but each way is undoubtedly individual.
How to make a deal in binary options?
In order to make a deal for a certain binary option the algorithm should be followed to:
- Press ‘Open new asset’.
- A window with different kinds of assets is displayed. Binary options are shown on the first position of a list.
- Pick up an asset you prefer from the diversity of suggested ones. If a particular asset is not available, there indicated time when an asset opens.
- Clicking in an asset you get a chart where index changes are displayed. The chart can be shown for a different period (from 30 days to 2 minutes).
- Select expiration time in the right-hand menu and insert the amount of your investment.
- Press ‘Higher’ or ‘Lower’ depending on your analysis.
- A deal is made.
Traders are not limited in the amount of assets or deals for trading. All active deals are displayed in the total portfolio.
What can traders do after making a deal?
When you picked up ‘Higher’ or ‘Lower’ the following actions are possible:
- The chart shows price movement therefore a trader is able to make more deals during the purchase time. Purchase time is the whole period without 30 seconds. 30 seconds before the expiration time new deals are forbidden to be made. For instance, selecting 5 minutes you are able to make deals in the next 4 m 30 s. What’s more: deals may be different: for ‘Higher’ and ‘Lower’ and even the investment amount can be changed.
- Traders may sell assets up to 15 seconds before the expiration time. A previous closure is offered on other conditions that are indicated in the upper right-hand corner of a chart.
- Deals for other assets can be made as well.
Binary option trading FAQ
What does the option mean?
An option is like a contract therefore a deal implies no physical rights of a trader. Users just make a prediction concerning further prices movement therefore no assets are bought and sold in fact.
Which assets should I use for trading?
Selecting between currency pairs and shares, that’s difficult to make the right choice. Currency pairs are understood as simpler instruments but those two groups cannot be compared because currencies and shares are two different markers that differ in many aspects including factors they are influenced by.
Which currency pairs are recommended for beginners?
The main characteristics of those assets are the liquidity and volatility therefore new entries are recommended selecting popular pairs with minimal volatility. The following assets belong to this category: EUR/USD, CHF/USD, AUD/USD, NZD/USD. Exotic currencies should be better picked up by professionals.
Which factors do affect currency pairs?
Foremost, the interdependence between demand and supply affect prices but moreover, such factors as political and economical news, oil and precious metals prices and even weather conditions may affect currency pairs. For instance, any political news connected with Great Britain is reflected on pairs with GBP.
Which strategies are the best for trading?
Looking through trading sites there can be found hundreds of strategies. Those are more or less effective under certain conditions therefore testing those strategies on a practice account is absolutely reasonable solution.
Is it effective to use binary options robot?
There exist special applications for binary trading that are called robots. Some of them must be bought, others are suggested for free but their efficiency is rather controversial. The majority of robots finally leads to losses and bring money for their developers only. The same concerns advisers and analytics. Your way to success should be based on your personal experience only.
Which days are better for binary online trading?
Foremost, users should understand that the majority of assets are closed on weekends while over-the-counter assets are available for trading. OTC instruments are very specific ones because they are completely regulated by a broker. Referring to traditional trading, volatility is higher but professional and experience traders get up to 87% of profits using various trading signals like Alligator, MACD or RSI, for instance.
Should I use calculator for binary trading?
Such instrument is rather popular but at the same time rather risky one. Such calculator helps to be in the red by controlling your investments. For instance, you picked up an asset with 80% of profit but your deal for 10 USD had gone wrong. Then you need to invest at least 11.5 USD to take all your money back. On the other hand, such calculator may force a trader to lose all funds.
Is binary trading legal in Pakistan?
The Pakistani financial regulator adopted a law that makes trading illegal for all brokers who have no special license therefore such investing instrument is not available for citizens but people may continue trading without any sanctions. The government puts an accent on risks but reliable brokers take care of their image. For instance, IQ Option in Pakistan is among the most popular brokers being licensed by CySEC. There are many traders from Pakistan among our users. Thus, before trading starting investors are recommended to collect the information about a broker online and then decide which platform should be used.
Can I earn for living from binary trading?
That depends on your patience, knowledge and development. Don’t consider such industry as gambling. At the beginning of your way time several dollars of profit are comprehended as successful results that must be step-by-step increased.