How to be VIP at IQ Option
Everyone who has made at least one transaction on the stock exchange dreams of becoming free and independent by doing what they love - trading on the stock markets, i.e. trading. Every year, tens and hundreds of thousands of beginners come to the market obsessed with the idea. And every one of those few dozens consider trading in the market to be a job. But there are some simple steps you can take to make it easier. In this article, you will learn how to be VIP at IQ Option and how to open an IQ Option VIP account. Of course, trading involves risk. However, all great things involve risk.
How to become VIP in IQ Option?
Trading is not just fun but a lot of work. For example, many novice traders have no idea how not being able to read the feed affects their results. So to shorten the long and thorny road to success, you can become a VIP at IQ Option.
If you are interested in how to become VIP in IQ Option, you will find all the relevant information below.
- So, to open an IQ Option VIP account, you have to first register on the platform. You will be able to accomplish a few steps in a short time. Enter your email address and fill in the requested information.
You have to enter some of your personal information so that they can identify you. This step is essential for the security of your data and funds.
- The next important step is the minimum deposit amount. For users in different countries, the minimum deposit amount varies. Therefore, it is recommended to contact customer support via live chat or by sending an email.
- Finally, the IQ Option VIP account is the minimum monthly trading volume. This requirement may also vary for different countries. Don't hesitate to get in touch with customer support via live chat or send an email to clarify this information.
VIP account benefits for the trader?
Of course, the main question is, why should I open an IQ Option VIP account?
1. Firstly, traders receive increased interest in binary options due to the VIP account.
One of the significant advantages that VIP account holders have over other traders is the higher profitability of successful trades.
The increased profitability makes it easier to speed up the growth of your account. So even if you have loss-making trades, you'll find it easier to recoup your losses with a few profitable trades than a regular account holder.
2. Personal account manager for VIP accounts.
With a VIP account, you get a personal account manager. Your account manager will always be there to help you with any questions. That enables you to concentrate on trading and get help from an expert.
3. Free Tournaments at IQ Option.
Another bonus for the VIP account holder is access to all the tournaments offered by IQ Option. In addition, you can participate in specific tournaments which are not available to regular account holders.
The VIP trading account can give you special privileges which you can use to increase your trading success.
A short review of IQ Option online broker
You cannot just come to the exchange and trade on your own. You will need a broker - an intermediary between the investor and the issuer, i.e. between you and the company whose securities you plan to buy. However, IQ Option is a broker which allows you to make money on different assets without buying them, i.e. CFD.
A CFD or Contract for Difference is a short term contract between buyer and seller that allows you to speculate on the price without owning the asset.
What is a CFD?
A CFD is a contract between an investor/trader and a seller that demonstrates that the trader will have to pay the price difference between the current value of an asset and its value when the contract is signed with the seller.
It is important to remember that instead of accounting for the asset's value, the trader is only dealing with the price difference between the entry and exit points of the trade. Both parties work to profit from the price difference at different times. Trading CFDs can be profitable for you, but you also have risks.
IQ Option offers you possible trading instruments:
- CFDs on currency pairs
- CFDs on shares
- CFDs on commodities
- CFDs on cryptocurrencies
- CFDs on ETFs
How do CFDs work?
Now that you understand what CFDs are, it's time to discuss how they work.
There are four main components to CFD trading:
- Trading volume
- Profit and loss
Let's analyse these components in more detail.
There are two different prices in the CFD:
The bid/ask price (Bid) allows a trader or investor to open a CFD trade long.
The bid/ask price (Ask) is the price at which a trader can open a short CFD trade.
Selling prices are slightly lower and buying prices somewhat higher than the current market price for a particular asset. The difference in these prices is known as the spread, which in most cases covers the cost of opening the CFD.
In other words, the buy/sell prices are adjusted accordingly to reflect the trading costs. The exception is CFDs on shares with which the trader is dealing.
In most cases, CFDs do not have a fixed expiration date. Therefore, you can close a position by trading in the direction opposite the position's opening. For example, if you open a position with 1000 gold CFDs, you can close out by selling 1000 gold CFDs.
3. Trade volume
CFDs are traded in lots of standard contracts. The volume of a CFD depends on the particular asset being traded and often mimics how the underlying asset is traded.
4. Profit & Loss
You can calculate your profit/loss by multiplying the total number of contracts by the value of each contract and multiplying the result by the difference between the opening and closing price of the asset. You can also use the following formula.
Profit/Loss = (Number of Contracts) x (Cost per Contract) x (Close Price - Open Price)
You also need to deduct the commissions and fees you have paid to the brokerage company.
The benefits of a CFD
CFD trading has many positive aspects. For example, it has a low entry threshold, low margin requirements and a wide range of trading instruments available. Here's how CFDs improve your trading experience.
- You can open short positions
CFDs offer more flexibility than other types of trading. You have the option of trading not only when the market is rising but also when the price is falling. You can buy CFDs when the price rises, or you can sell CFDs when the market is bearish.
CFDs allow you to invest a small amount of money to make large profits by significantly increasing the size of your transactions. In addition, you can choose to trade CFDs to work more efficiently with your available capital. By using leverage, CFDs can bring higher returns than other investments.
- Similarity of CFDs to the underlying market
As already mentioned, CFDs mimic market trends quite accurately. Buying a real stake in a company is very similar to buying a CFD on a single share. For example, purchasing a CFD of 500 shares is equivalent to buying 500 shares. Your position adjusts when you trade your CFD shares to compensate for the effect of the dividend payout. It is also important to remember that you do not have shareholder preference because, with a CFD, you do not own the stock.
Tips for successful CFD trading
For CFD trading to be successful, it is crucial to prepare yourself for trading. Here are five small tips to help you be successful and make profits:
- Develop a trading strategy based on clear rules.
- Use a stop loss to limit your losses.
- Start by trading the most liquid instruments, such as blue chips and indices.
- Always research the market thoroughly.
- Do not use leverage higher than 1:10.
What is a Demo Account? Demo Account as an Advantage of IQ Option
A Demo Account is a type of account provided by the trading platform. It is funded with virtual money and allows you to test the trading platform and its various features before you decide to open a real money account.
Think of a demo account as a simulator if you are familiar with games. A simulator game tries to replicate various real-life events playfully.
Using a demo account allows you to trust your trading decisions; you can trade without worrying about mistakes. In addition, this account will enable you to monitor market conditions and experiment with different charting tools and indicators.
You can also practise using stop-losses and limit orders as part of your risk management approach by familiarising yourself with your trades' entry, evaluation, and execution phases.
You can open a free demo account on the IQ Option platform. It has all the functions of a real account, and $10,000 is automatically credited to it as soon as you register. This amount may be replenished. The demo has no expiry date and no commissions.
Trading CFDs offers good opportunities for profit. However, along with the significant potential rewards, CFDs also present significant risks which you should consider before opening a position.
It is important for traders to make a detailed market analysis and exercise caution before investing their capital. With a reliable broker and an effective strategy, you greatly increase your chances of success.
By taking the time to learn how the platform works, you will sooner be able to start live trading. Real trading is like nothing else! So learn and start trading today!