The Risks and Benefits Of Trading
When it comes to options trading, it has both risks and benefits. As for benefits, it requires a smaller initial outlay than purchasing the stocks. Moreover, it offers time to an investor to check how things play out. Lastly, options trading can protect investors from downside risks on stocks owned by them. As for the risks, it can expose investors to unlimited losses if they are not careful. Moreover, it requires investors to predict short-term price movements and the margin requirements can increase trading costs. If you want to get into options trading, then you need to be careful about the risks. However, brokers like IQ Option that own a notable place in the options industry can be useful. You can learn more about IQ Option at www.iqoptionmag.com.
What is IQ Option?
IQ Option is a brilliant broker that started its journey with binary options in 2008. The broker offers plenty of tradable assets and various asset classes to traders to choose from. Whether you prefer forex CFDs, cryptocurrency CFDs, binary options, digital options, or commodity CFDs, IQ Option offers all of these on one single trading platform.
Available Instruments
You can trade different kinds of instruments on IQ Option. There is the advantage of using a free and unlimited demo account so you can practice trading before putting real money to risk.
CFDs: The stock market is very volatile and traders partaking in this market must be prepared for big moves. While trading stocks, traders typically need to use lesser leverage than forex trading and using high leverage is risky. However, stock trading has great potential to bring in great profits. On IQ Option, you can trade more than 17- stocks with super-tight spreads which can be below 0.02% in some cases. The minimum deposit is $10 and the minimum stock investment is $1.
Forex: The huge forex market is highly liquid with a daily turnover of trillions of dollars. Intraday traders and scalpers find this market attractive because of its low spreads and commissions. Moreover, leverage is almost always available which helps traders in controlling large positions at a very low value. IQ Option offers one-click trade execution with leverages up to 1:30 for EU traders and 1:1000 for non-EU and pro-EU traders. Minimum deal size is $1 and the minimum deal size is $1.
Crypto-trading: There are +/- 16 cryptocurrencies available to trade on IQ Option with a minimum deposit of $10 and a minimum deal of $1. Maximum crypto leverage for non-EU and EU pro traders is up to 1:10 and for EU traders, it is up to 1:2. There also are special cryptocurrencies with fixed leverage up to x100. You can earn OTN tokens from the trade.
ETFs: IQ Option offers a wide range of financial assets for you to trade from, including digital options, binary options, commodity CFDs, cryptocurrency CFDs, stock CFDs, FX options, equity index CFDs and more. With the minimum deal size of $1, the super-tight spreads go as low as 0.01%. The available leverage is up to 1:100. You can invest in specific market sectors conveniently and go long or short for buying or selling respectively.
Conclusion
If you are a beginner and do not have enough knowledge and experience in trading, then you are in even more risk of losing money. So, do not hesitate to use the free demo account of IQ Option before getting into live trading. The account has all the features of a live account and you can switch between your live and demo account easily.
Veeramachineni Lalitha
I am Finance Content Writer. I write Personal Finance, banking, investment, and insurance related content for top clients including Kotak Mahindra Bank, Edelweiss, ICICI BANK and IDFC FIRST Bank. My experience details : Linkedin