How to trade CFD instruments (Forex, Crypto, CFD)?
How to trade CFD instruments (Forex, Crypto, CFD)?
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| CFD |
General Risk Warning:
The financial services provided by this site are at high risk and can result in the loss of all your funds. You should not invest a larger sum than the sum you are capable of losing.
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New CFD types, available in the IQ Option trading platform include CFD, Forex, and CFD CFD shares.
The goal of a trader is to predict future price movements and capitalize on the difference between the current price and the upcoming price. CFDs react like the market in general. If the market matches your expectations, then your position is closed In The Money. If the market does not match your expectations, your transaction is closed Out Of The Money. The difference between trading Binary Option or Digital with CFD is your advantage depending on the difference between the starting price and the closing price.
In CFD trading, there is no expiration time but you can use multipliers and set stop / loss and trigger market orders if the price reaches a certain level.
The goal of a trader is to predict future price movements and capitalize on the difference between the current price and the upcoming price. CFDs react like the market in general. If the market matches your expectations, then your position is closed In The Money. If the market does not match your expectations, your transaction is closed Out Of The Money. The difference between trading Binary Option or Digital with CFD is your advantage depending on the difference between the starting price and the closing price.
In CFD trading, there is no expiration time but you can use multipliers and set stop / loss and trigger market orders if the price reaches a certain level.
How do multipliers work?
Trading CFD offers the use of multipliers that can help traders control positions that exceed the amount of money invested in them. Profitability potential (as well as risk) will also increase. By investing $ 100, a trader can earn a profit that can be compared with a $ 1000 investment. Such is the opportunity offered by multipliers. However, remember that the same can also happen to potential losses because it will also be multiplied. Please note that IQ Option does not offer multipliers for Crypto trading
How do I use Transaction Close Settings?Stop-loss is a trader's order to limit losses in certain open positions. Take-profit works in a similar way, allowing traders to lock in profits when a certain price level is reached. You can set parameters in percentage, amount of money, or asset prices. You will find detailed information here as well as an example like the image below:
Can the broker automatically close the position?
Trading CFD offers the use of multipliers that can help traders control positions that exceed the amount of money invested in them. Profitability potential (as well as risk) will also increase. By investing $ 100, a trader can earn a profit that can be compared with a $ 1000 investment. Such is the opportunity offered by multipliers. However, remember that the same can also happen to potential losses because it will also be multiplied. Please note that IQ Option does not offer multipliers for Crypto trading
"CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money".
How do I use Transaction Close Settings?Stop-loss is a trader's order to limit losses in certain open positions. Take-profit works in a similar way, allowing traders to lock in profits when a certain price level is reached. You can set parameters in percentage, amount of money, or asset prices. You will find detailed information here as well as an example like the image below:
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| Auto Close Setting |
General Risk Warning:
The financial services provided by this site are at high risk and can result in the loss of all your funds. You should not invest a larger sum than the sum you are capable of losing.
Can the broker automatically close the position?
When trading Forex, Crypto, and CFD, traders should note that there is an automatic close function. This function is designed to protect trader funds on the platform. In most situations, the position will automatically close when rejected at 95%. It may be that the position will close within the range of 95% to 100%, such situations can occur in times of low liquidity or high volatility.
How to calculate profit in CFD trading?
How to calculate profit in CFD trading?
If the trader opens a long position, the profit is calculated based on the formula: (Closing Price / Opening Price - 1) x multiplier x investment. If the trader opens a short position, the gain is calculated on the basis of the formula (1-closing price / opening price) x multiplier x investment
For example, AUD / JPY (Short position): Closing price: 85,142 Opening price: 85,173 Multiplier: 2000 Investment: $ 2500 Profit is (1-85,142 / 85,173) X 2000 X $ 2500 = $ 1,819,82
What is the minimum investment to open a transaction?
Minimum investment to open a transaction depends on the currency of your account. On any instrument, the minimum investment is: USD 1, EUR 1, GBP 1, RUB 30, TRY 20, BRL 20, MYR 40, IDR 100,000, VND 200,000 and CNY 70.
What is Slippage?
Please note that Slippage may occur when trading in a CFD. This is the difference between the expected price in an order and the price at which the order is executed. Can have a positive or negative effect. Tends to occur in periods of higher volatility when market prices fluctuate very quickly. The situation can occur with the Stop Loss and Take Profit orders.
Do you charge a commission for trading?
IQ Option reserves the right to charge a commission when you open a cryptocurrency position. Before the position is opened, you can see a confirmation tab that shows the amount information to be charged. This amount is deducted from your original balance according to the percentage displayed on the tab. The amount can be up to 10% the amount of investment.
NOTE: This article is not an investment advice. Any reference to price movements or historical rates is information and based on external analysis and we do not guarantee that such movements or levels of movement are likely to recur in the future
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