Investing in Shares on IQ Option.
One of IQ Option’s new main features is the possibility to invest in shares. In addition to classic options (which are not to be confused with binary options), there are also CFDs . Through CFDs, you can specifically invest in shares on more than 7000 securities. It’s a huge selection proposed by a broker confirmed to be at the top of the industry.
In this article, we will learn how and in which stocks you can invest in on IQ Option.
Table of Contents.
NYSE and NASDAQ.
Although the option to trade shares on IQ Option is very large, this is only “limited” to the NYSE and NASDAQ indices. Well, that’s not a bad thing as these are two of the most important indices in the world.
NYSE (New York Stock Exchange) is the world’s largest stock exchange in terms of trading volume and number of listed companies. At the same time, it is also the first based on the total capitalization of listed companies. Ferrari shares (RACE) are also listed on the NYSE.
NASDAQ (National Association of Securities Dealers Automated Quotation) is the first example of an electronic stock exchange in the world. This is, in fact, comprised of a computer network so it is only natural to be known as the technological index par excellence. This includes, for example, stocks such as Facebook, Microsoft, Apple, Google, Cisco Systems, IBM.
As you can well guess, the variety of shares on IQ Option is very wide and includes securities from all sectors.
How to Trade Stocks on IQ Option.
On IQ Option, you can now trade stocks with two different types of instruments :
Equity CFDs : After years of competing with CFD brokers, IQ Option also expanded its services by offering this great financial product, which allows you to engage on the stock exchange online from the comfort of your home or mobile device. But what are CFDs? We’ll talk about it in the next section. This investment is short-term. Classic options : Active since 2017, these allow the trader to buy options on shares and then redeem the possibility to buy the shares at an agreed price, obtaining investment results in proportion to the change in price since the time of purchase of the option. They foresee an expiration date but also the possibility to sell the option even before the expiration date.
Equity Investment on IQ Option with CFDs.
We have learned that CFDs are now also offered to invest in stocks via IQ Option.
The CFD or Contract for Difference is a financial instrument created to replicate the performance of another financial instrument (called an asset or underlying asset).
The trader can open two types of positions:
Buy or Long : with this position, the trader makes profits in proportion to the rise in the price of the stock. Sell or Short : with this position, the trader obtains profits in proportion to the drops in the share price.
That said, CFDs have some special features:
Spread : this is the cost that the broker retains as compensation for its services for providing CFDs and brokerage. It actually comprises the difference between the asset price and the CFD price. Financial leverage : very important. With CFDs, you invest with much smaller amounts of capital than with traditional investments. For example, a leverage of 1:10 allows you to invest with 10 times less capital. A leverage of 1:100 allows you to invest with 100 times less capital. Risk limitation tools : With CFDs, there are tools such as Stop-Loss, which is the order that allows you to automatically close a position when it causes a loss that reaches a level set by the user.
From the Introduction to Facts: Trading Stocks on IQ Option.
Let’s move from words to deeds and see what you need to do to trade stocks on IQ Option.
If you have not yet done so, the first thing you need to do is to sign up. You can do this from this page , from which you can also access the free demo.
Risk Warning: Your capital may be at risk.
In fact, you can start by practicing with a free demo , with no obligation to switch to a real account or to comply with deposit requests.
2. Once you enter the platform, the second thing you need to do is to click the + button at the top to select an instrument to trade with.
3. The third thing you need to do is to select the “SHARES” category and then choose the security with which you wish to trade.
4. The last thing you have to do is set all the factors to open a position upwards or downwards. Among others, for example, the amount of investment.
Pros and Cons of Having a Wide Selection.
Having a wide selection of stocks to trade with brings many advantages but also some disadvantages. T he disadvantages, however, depend on the user .
In fact, having a large number of stocks means having to select . Imagine that you have a 500-meter long closet and have to choose how to dress. Rest assured that many will take much longer while others will dress differently than usual. Still, others will completely distort their style or dress horribly.
In short, you need to be able to choose without taking too long.
The tools available to users to assess the performance and potential of a title are many:
Financial articles Search filters offered by specialized sites Technical analysis tools Looking at the graphs displayed in real time Others.
So how can you make the most of the large selection of shares on IQ Option?
You can follow these tips:
Select a limited number of stocks to follow more closely Diversify based on the company’s sector of activity (now you really have the possibility) Add stocks as extras when there are strong trends (upwards or downwards) for short-term positions.
Let’s talk about the Advantages.
Let us now turn to the advantages of having more than 7000 securities available with which to invest in shares on IQ Option.
As mentioned earlier, the first advantage is the possibility to diversify your portfolio . Diversifying means creating a portfolio with securities of various sectors, sizes, and risks. Diversifying reduces the risk of incurring losses due to a sudden change in the price of a particular company.
The second advantage is that you have securities with high earning potential at your disposal. The American Stock Market is quite interesting from this point of view since it includes hundreds of shares of companies immersed in a very dynamic market.
The third advantage is done by young companies, or high-tech companies that can offer surprises either because by producing new products (a new discovery for example) or acquiring a larger company.