Of course, this information should not replace a trader’s own analysis, however, it may be very useful when deciding how, when or what to trade. It can also be helpful for beginner traders, who still need some guidance regarding the usage of analysis tools.Such analysis may come in handy for traders who make multiple trading deals in a day and need all the analytical data to be in one place, in easy access.he information provided in the tab includes the information about the change in the asset’s price, news that may affect the currency as well as collective technical analysis of the asset basedTo understand Forex charts, there are a few points to consider:Base and Quote currency: The exchange rate always shows two currencies. The first currency is called the base and the second one is the quote. The price of the base currency is always calculated in units of the quote currency. For example, if the exchange rate for GBP/USD is 1.29, it means that £1 Sterling costs $1.29 US dollars. Based on this price, a trader can better understand how the chart is formed. If the chart is going up, it means that the price of the USD has depreciated against GBP. If the chart is going down, it means that the price of the USD is growing against the GBP.
Major and exotic currency pairs: All currency pairs can be sorted into major and exotic currencies. Major world currencies are predictably called Major currencies, which include: EUR, USD, GBP, JPY, AUD, CHF and CAD. Exotic currency pairs are those of developing or small countries, such as TRY, BRL, ZAR etc. CFD: On many trading platforms, including IQ Option, Forex is traded as CFD (Contract for Difference). When a trader opens a CFD, they don’t own it, but they trade on the difference between the current value and the value of the asset at the end of the contract (when the deal is closed). This means that a trader will receive their outcome in accordance with the entry and exit price.Multiplier: Using a multiplier allows the trader to manage a position that is greater than the amount of funds at their disposal. However, this of course increases the risks involved.Analysis tools for Forexn a variety of trading platforms, traders are able to make use of analytical charts that, when utilized correctly and effectively, may assist in a preferable outcome. Each asset may be provided with an ‘information’ section on a trader’s specific trading platform.
For example, on the IQ Option platform, you can find the “Info” button which opens a tab with asset info. This button can be found on any asset, not just Forex.Firstly, it’s important to understand what Forex is exactly, why it exists and why it’s existence is necessary.The term ‘Forex’ is short for ‘foreign exchange’ and is mostly referred to as ‘FX’. The foreign exchange market is not just the largest market in the world, but it’s also the most liquid. It’s decentralised: it’s not just one place, it’s a system of stable economic connections between banks, brokers and individual traders, with one main goal of speculating on foreign currency buying, selling, exchanging etc
The FX market doesn’t set the value for currency; it simply determines its value against another currency. This is why you’ll often see currency pairs like EUR/USD, AUD/JPY and so on. Its pairs like these that Forex focuses on.Forex might seem like a bit of a minefield to begin with, but once you nail the main principles, you’ll be well on your way to trading like a pro in no time.In this article, we’ll give you the rundown on what exactly Forex is, how to analyse and understand charts, as well as some helpful tools to use in your traderoom.
Let’s get to it!You can also use the Trailing Stop feature — it will automatically shift your loss limit in case the price is moving in the desired direction. On top of that, you can use your balance to keep the position open. In this case, the system will keep your position live even when the loss reaches 95% and hits the autoclose level. This is an option in case there are indications to assume that the price will reverse soon, even though the deal is already out of money.Press Buy or Selow when you’re all set, it’s time to open a trade. Press the Buy or Sell button depending on your trading strategy and prognosis.
Now, all you need to do is wait. You can leave the trade hanging until it’s closed automatically at the Stop-Loss or Take-Profit level or close it manually by pressing the Close button in theupperright corner.Forex traders’ profit potential isn’t limited: the further the market moves in your direction, the more you earn. You can boost your gain even further if you trade with the multiplier, which might mean profits exceeding 100%. It’s the same about the potential loss though: the further the market goes against you and the higher the multiplier, the bigger the loss. If your trade worked out well, your profit will be displayed on the chart and reflected in the TradingHistory section. You’ll see the profit amount added to your balance in the upper right. There is no expiration date for Forex positions. However, if you want to keep one open overnight, be ready to pay a little overnight fee. You can check the
overnight funding conditions in the Asset Info section (more on it below).In the News section you can find the asset-related news gathered from reliable sources and updated in real time. For more info on what can affect the price, go to the Economic Events section. If you are interested in technical analysis, find useful insights on pivots and popular indicators in the Technical Analysis section. Technical analysis tools Technical analysis involves taking into account the past performance of an asset to predict its future behavior. With the help of technical indicators, traders can conclude where the price will go and open a trade in the corresponding direction. IQ Option offers over 100 indicators to perform technical analysis. Moving Average, MACD, and RSI are some of the most popular ones for Forex trading. To apply them on the chart, click on the Indicators icon in the bottom left corner of the Traderoom and select the desired indicator from the list.