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Binary options trading on the weekend with IQ Option
One point to note here is that just like trading during the weekdays, it is crucial that an investor monitors the news and events that are taking places in different places in the world as they definitely have an impact on the prices of various assets of trade. One may relax during the weekend and only indulge in the trade not knowing of the events which are shaping the security prices; this might lead to wrong predictions leading to heavy losses in a period that high returns are expected.
TRADING BINARY OPTIONS WITH IQ OPTION
When it comes to binary options trading, IQ Option is a well-known and established broker. With a solid options trading platform and other essential features, IQ gives you the best opportunity to stay ahead of the pack. Continue reading to find out what binary options are, how to trade it with IQ Option, and which features you can enjoy with this broker.
Binary Options are only available to non-EU clients and certain EU clients who have professional accounts with IQ Option.
Min. Deposit $10 Min. Investment $1 Profit up to 95%* Free Demo account
*Amount is credited to account in case of successful investment
What are Binary Options?
A binary option enables traders to speculate on the price movement of a particular asset and invest a certain amount of money:
- which is either lost completely in the case of a losing trade,
- or is multiplied by a certain profit factor in the case of a winning trade.
Let’s use a EUR/USD forex binary option contract with a payout of 90% as an example. A trader can either speculate on a rise in the price of this currency pair, or on the price to fall. The trader needs to decide on the following:
- Whether the price is likely to rise or fall.
- When to enter the trade.The strike price (price at which to enter the trade).
- How much to invest in the trade.
- The expiration time of the option.
When the trader has determined all of these points, he or she can enter the trade and simply wait until expiration to know what the result is. (IQ Option’s binary options can also be sold up to a certain point before the expiration time, though). If the trader believes that the price will rise, he buys a call option and in case a lower price is anticipated, a put option can be bought. In IQ Option’s trading terminal, the call option button is green and reads ‘Higher’ while the put option button is red and reads ‘Lower’. Look at this screenshot:
Let’s examine a particular scenario to better grasp the technical details of how a binary option can be traded. In this example of an option trade on the EUR/USD, we will use the following parameters:
- Strike price at 1.16500.
- Expiration time: 5 minutes after the option contract is entered.
- Payout: 90% of the invested amount.
- A call option is bought by a trader who expects the price of the EUR/USD to rise and be above 1.16500 (the strike price) at the time when the option expires.
- An investment of $10 is made in this trade.
So when the trader buys this call option one of the following will happen:
- If the price is at 1.16500 when the option expires, the trader will neither lose his investment of $10 or gain anything, because the price at the time of expiration is the same as the strike price.
- If the price trades above 1.16500 when the expiration time is reached, the trader will gain 90% ($9) on top of the amount ($10) he invested. So when the option expires, the trader will still have his initial investment of $10 plus an extra $9, which means he has made a profit of $9.
- If the price trades below 1.16500 when the expiration time is reached, the trader will lose his initial investment of $10.
- The trader may, for whatever reason, choose to exit the options trade prematurely. This will limit his profit potential on the particular trade, as the payout (in case a profit is realized) at that time will be less than the maximum payout which may be achieved in case the price is above the strike price at the time of expiration. Of course, in the case that a premature exit from a binary option results in a loss, the loss may in certain cases be less than the maximum loss which could be incurred if the option expired out of the money (below the strike price).
Now that we’ve covered some basics of trading binary options, let’s look at how to trade it with IQ Option, specifically.
How to Trade Binary Options With IQ Option
Trading binary options with IQ Option can be done by doing the following:
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1. After opening a live or demo account with IQ Option, open the web or desktop version of IQ Option’s trading platform:
2. Click on the ‘plus’ button next to the current trading instrument to open a new chart. This brings you to a list of instruments in which binary options are available:
3. From the list of binary options, open charts for those instruments you want to trade.
4. On the right side of the platform, choose the investment amount and expiration time, and then click on the ‘HIGHER’ or ‘LOWER’ button to confirm a ‘call’ or ‘put’ option, respectively. Look at this screenshot:
The profitability percentage is the percentage of the invested amount which will be credited to your account for a successful trade. The percentage in this screenshot is *71%, which means that a trader who invests $10 in a successful trade will retain this $10 and gain an additional $7.10 as soon as the binary option expires. If the trader loses the trade, he will lose the $10 he invested.
*Amount to be credited to the account for a successful trade.
Binary Option Instruments Offered by IQ Option
With IQ Option, clients can trade binary options from the following asset classes: forex (about 34 pairs), stocks and stock indices (about 24), and commodities (gold and silver). Traders can also enjoy weekend trading with OTC (over the counter) binary options which are available when the markets for regular binary options are closed. Only a few forex pairs are available to trade with OTC binary options.
Minimum Deposit and Trade Size
The minimum deposit at IQ Option is $10 and the minimum deal size is $1.
The payout percentages of the different binary options vary, depending on the time of the day, the expiration time, the spread and transaction costs of the underlying instrument, the instrument’s liquidity (which may also impact it’s spread), and some other factors. The maximum payout percentage (on certain instruments) is about 90% to 95%, but this may vary from time to time.
IQ Option’s Trading Platform
Although IQ Option offers numerous other tradable instruments besides different option contracts, it is actually well-known for offering excellent infrastructure for trading options, including binary options, of course.
An integral part of a great option broker’s infrastructure, is its trading platform. The platform needs to be reliable and robust. Besides this, it also needs to be easy-to-use and responsive enough to process orders in a timely fashion. Then, of course, the platform needs to have the necessary charts, technical indicators, and other features which make trading as convenient and accurate as possible. Let’s take a closer look at some of the features available in IQ Option’s trading platform:
1. Charts and Technical Indicators
Technical analysis on different trading instruments can be done accurately and efficiently with IQ Option’s charting package. Whether you like to use moving averages, oscillators, or even Ichimoku Cloud, these indicators (and many others) are freely available in the trading platform itself.
A FEW OF THE INDICATORS AVAILABLE IN IQ OPTION’S TRADING PLATFORM.
2. Other Platform Features (On the left side of the platform)
Other items in IQ Option’s platform include the following:
- Total Portfolio (Here you can see a list of all your open positions).
- Trading History (A list of all closed trades)
- Chats and Support (Chat with fellow traders or IQ Option support representatives).
- Leaderboard (See how other traders are faring. This is based on winning trades only)
- Market Analysis (Get live news and market updates here).
- Tournaments (Get information about IQ Option’s trading tournaments here).
- Video Tutorials (Learn more about the markets here).
- Help (Ask a question or view frequently asked questions in this section).
3. More Platform Features
With IQ Option’s trading platform, traders can trade binary options (and other instruments) directly on the charts they’re looking at. There is no need to open a separate order entry box or anything like that. This makes trade execution really convenient.
Traders can also choose between different chart types (for example candlestick charts, Heikin-Ashi charts, line charts, bar charts, etc.), apply different timeframes, and use graphical tools to draw lines and other features on their charts.
IQ Option’s Regulation / Licence
IQ Option Europe Ltd. is registered at Cyprus, and is regulated by CySEC. IQ Option Ltd. is registered at St. Vincent and the Grenadines and this entity is not regulated.
IQ Option’s Mobile App
Traders who would like to specifically trade binary options, on mobile devices, can do it on Android and iOS devices with the IQ Option progressive Web App (PWA).
Google Play and the App Store do not have apps available for trading binary options with IQ Option.
For more information about trading binary options with the mobile PWA App, please read our Article IQ Option PWA.
A great feature of IQ Option, is its free demo account which has all the features and tradable assets of a real money account. Also, traders with real money accounts can switch between their real and demo accounts by simply selecting the account they want (from the drop-down menu) at the top of the trading platform. Here is a screenshot:
TAP ON THE ARROW NEXT TO THE ACCOUNT BALANCE TO SWITCH BETWEEN LIVE AND DEMO ACCOUNTS.
IQ Option makes trading tournaments available to non-EU clients and certain EU clients who have pro trading accounts with IQ Option. With each tournament, only binary options can be traded. Each participant gets a tournament trading account with a virtual balance of, for example, $100; with an entry fee of $20 (also just an example). The initial virtual account balance, entry fee, prize pool and structure, and duration of the tournament vary.
Participants compete for a prize pool which is divided between the top traders (usually between 1 and 30) with the most money in their tournament accounts at the end of the tournament. Contestants can open binary option trades with any portion of the available funds in their tournament accounts. They can also use the ‘rebuy’ tool which allows them to top up their virtual tournament trading accounts with the value of the initial balance in case the balance falls below the value of the initial balance. This rebuy tool can be used an unlimited number of times during each tournament but each rebuy will cost the same amount as the initial entry fee.
IQ Option’s support team is on standby to assist clients 24 hours a day, 7 days a week, via live chat, telephone, or email.
It shouldn’t be surprising that IQ Option has received quite a number of awards. These have been awarded to IQ Option for its outstanding trading apps, its commitment to quality and excellence, its efficiency, impeccable design, and other attributes. Although IQ Option offers much more than just binary options, many of its awards have been for services and infrastructure related to binary options.
IQ OPTION HAS OFTEN RECEIVED AWARDS FOR ITS TRADING APPS, CUSTOMER SATISFACTION, AND OTHER GOOD ATTRIBUTES.
IQ Option is a solid broker with good trading apps, especially for trading binary options. It offers a wide range of binary option assets and also has digital options, forex pairs, stock CFDs, commodity CFDs, cryptocurrency CFDs, and ETFs available.
IQ Option’s trading app (desktop, online, or mobile) is equipped with all the tools that a trader may need, and to execute trades with this user-oriented app is a pleasure.
Weekend trading with binary options allows traders to trade seven days a week. With forex markets trading hours spanning around the clock for 6 days a week, and certain markets and indices open across Saturday and Sunday – there are plenty of opportunities. This article explains the details of weekend trading and how you can succeed in trading online at the weekend.
This article explores :
- Trading On The Weekend – Benefits And Drawbacks
- Why Trade At Weekends – Available Markets And Assets
- Weekend Strategy – Specific Strategies And 3 Top Tips
With this information, you will be able to succeed at weekend trading with binary options.
Trading On The Weekend
While much of the market is in bed on Saturday morning, some are up bright and early to begin weekend day trading. From forex and futures to stocks and cryptocurrency, many are simply sleeping and drinking their way through two days of potential profits. So, this page will examine both the advantages and disadvantages of day trading over the weekend, before covering strategies, trading hours, plus top tips.
Firstly, why should you swap a relaxing day out for trading online over the weekend? Perhaps for any of the following reasons:
- Profit potential – You have two extra days to trade during the weekend. That’s two additional days to generate more earnings. If you’ve not had such a good week, the weekend gives you an opportunity to rectify your account balance.
- Time – Trading on the weekend allows you to trade multiple currency pairs, for example, and still have plenty of time to evaluate each trade. On top of that, you don’t have to rush decisions, whereas in the week you may desperately be trying to get in and out of the market at certain price points.
- Strategies – During the weekend when the markets are on pause, you have the time to develop more complex trading strategies. In addition, some trading plans will perform better on the weekend. For example, the Asian markets often behave differently to Western markets on Saturday and Sunday. As a result, certain strategies could generate greater profits at the weekend vs in the week.
- Undivided attention – Understandably, many people work throughout the week. Therefore, finding the time to concentrate on trading too can be a challenge. This is why weekend trading gives you a fantastic opportunity to focus solely on your trade activity. On top of that, fewer distractions could result in enhanced trade decisions.
- Preparation – Weekend trading can be more than just entering and exiting positions. While most of the markets take a breath, you can conduct in-depth technical analysis. As a result, you could hone your strategy and be better prepared by the time the opening bell rings on Monday morning.
Despite the number of benefits, there are also certain downsides to day trading at the weekend:
- Reduced options – There are fewer instruments available for trading at the weekends. Many stocks, in particular, will be unavailable. However, currency weekend trading is readily available as the markets run 24/7.
- Weekend bias – There is also a danger of carrying a weekend bias with you into Monday. For example, you may have tweaked your trading plan or be desperate to make up for a loss. If you’re not careful, this can result in an unprofitable Monday.
- Reduced volume – Despite forex, oil and gold trading still being available at the weekend, the low trading volume can lead to problems, such as a reduced ability to validate price shifts. Furthermore, a lack of volume can lead to flat markets and unhelpful charts.
- Limited brokers – Many brokers do not offer trading over the weekend. They feel there simply isn’t the volume or interest to make it worth their while. So, if you’re committed to a specific broker, you may be unable to trade unless you go elsewhere. Fortunately, IQ Option, 24option, FXCM, and Nadex all facilitate weekend day trading.
- Trading hours – Weekend day trading may not suit your body clock. Middle Eastern markets, for example, are often active over the weekend. This means if you’re based in the West, you may have to be prepared to trade during anti-social hours.
- Liquidity – Without money managers to take the other side of trades, markets are often less liquid. Reduced liquidity can then lead to an increase in volatility. The result of which is wider spreads between bid and ask. This can make generating profits even more challenging. Having said that, high levels of volatility can also mean enhanced profit potential.
Leading Weekend Brokers
Why Trade At Weekends?
Trading Stocks And Indices
Many of the traditional instruments and markets you trade in during the week will be off the cards at the weekend. For example, the NASDAQ and other US stock exchanges are closed from Friday 16:00 to Monday 09:30. However, the Middle East has weekdays running from Sunday to Thursday and Saturday to Wednesday.
In addition, brokers and platforms in the currency and CFD markets are offering seven day trading weeks and a range of local stocks and indices. Some of the indices which will provide the most volume for day trading in the weekends are:
- Tadawul Index – The Saudi Arabian index represents the largest economy in the region. As a result, this is the most popular index found amongst brokers offering weekend trading.
- Tel Aviv 25 – Also known as the TA25, it is formed of the 25 largest Israeli companies. Those interested in the IT and pharmaceutical industries could be well suited.
- DFM Index – Some of the most significant players in the United Arab Emirates can be found here.
- Kuwait Stock Exchange – The Kuwait economy is diverse. Therefore, this stock exchange hosts companies from the financial, insurance, and real estate sectors.
Now that Saudi Arabia has moved its workweek to align with neighbours, foreign traders now have better access than ever before. As they continue moving towards full access, liquidity will increase and weekend traders will benefit from greater profit potential.
The growth in traders operating at the weekend has not gone unnoticed by brokers however. Some now offer trading on markets that are traditionally closed. IG for example, now offer access to the FTSE and DAX indices, as well as Wall Street, over the weekend. The rules around stop losses etc change slightly (week day trades are unaffected by anything that happens over the weekend for example). The move illustrates the growing amount of business done over the weekend – driven in a large part, by Cryptocurrencies such as Bitcoin and Ripple which are not restricted by market hours.
Opportunities for weekend trading are only likely to increase as trader activity and trading volume grow.
Cryptocurrencies & Binary Options
Weekend trading in cryptocurrencies and options is also on the rise. Bitcoin and Litecoin are just two popular digital currencies that have binary options offered for them. Because they are predominantly an Internet creation, they can be effectively traded 24/7.
In the week the major currencies receive the majority of the attention. But by late Friday trading volume in cryptocurrency options begins to surge.
On top of that, some binary options brokers provide specific weekend options that start on Friday at the end of US trading and last until Europe’s opening on Monday morning. These options have even been carefully engineered to cover weekend events, including economic data releases from China and G-7 meetings.
The first thing to note is yes, the weekends do effect trading strategies. Major market players are offline, leading to unusual dynamics over the weekend. As a result, volatility can spike and volume can diminish.
Fortunately, however, there are strategies that have been specifically developed for trading on the weekends. Below one of the most effective and straightforward to set up has been detailed.
Trading the Weekend Gap
Gaps are simply price jumps. Something causes the price to shift either up or down while skipping the levels in between. Usually, gaps are a result of beginning new movements or accelerating movements. However, these gaps require significant trading volume. But due to major market participants being out of the game on the weekend, you don’t normally see these type of gaps. Instead, weekend trading focuses on closing gaps.
Gaps can close when just a few traders create them. For example, several people may invest in the same direction, whether it’s by accident or not. As a result, the market will rise or fall. Most traders will then be unsure what is going on. Often they end up thinking the price has gone too high or too low. So, they try to profit from the apparent mistake by trading in the opposite direction.
- Upwards gap – An upwards gap will see traders sell their securities. The market will then drop and the gap should close.
- Downwards gap – In a downwards gap, traders will buy, the market will rise and again the gap will be closed.
Gaps often close in low-volume markets, such as the weekends. This makes weekend gap trading an ideal strategy.
Armed with the knowledge the gap will close, you can now capitalise on market conditions. This is because you also know several key bits of information. Firstly, you have your price target, because the market will move until the price hits the level of the initial candlestick that makes up the gap. If an upwards gap, it will sink to the high of your first candlestick.
You also know the expiry. This is because you know the market is poised to hit the target price within the next period. Therefore, you can use a high/low option. Alternatively, a one-touch option may increase your returns further.
Also note, ensure you use an option with a price target inside the gap, plus an expiry shorter than a single period.
This is often thought of as a forex weekend gap trading strategy. But in actual fact, this technique can be used with both options and commodities too.
Finally, you may be able to increase your takings by exploring weekend gap trading with expert advisors (EA). Following pre-determined criteria, these algorithms allow you to execute far more trades than you ever could manually.
How Else Can You Capitalise on the Weekends?
If you’ve had a long trading week and you want a break from actually entering and exiting positions, there is a whole host of useful activities you can pursue on the weekends. Some of the best uses of time include:
- Back-testing – Using historical price data, you can simulate previous market environments to test a potential strategy. This is the perfect way to identify and remedy any problems before you put your plan into action on Monday morning.
- Performance analysis – Getting a moment to reflect in the middle of a busy trading week is often challenging to say the least. That’s why the weekends are a perfect time to sit down and go through your trade journal and recent performance. Where did you go wrong this week? What changes do you need to make to your current strategy? Did you let emotions drive your decision-making process?
- Risk adjustments – By conducting performance analysis, you can decide whether adjusting your risk parameters is sensible. For example, if your strategy is generating more consistent profits, perhaps you can increase your risk tolerance and position size.
- Future planning – Weekend trading can also consist of planning for the upcoming week. For example, is there any events coming up in your economic calendar that may impact share trading? If so, have a plan in place to capitalise on the price fluctuations they will trigger. As Benjamin Franklin asserted, “by failing to prepare, you are preparing to fail”.
- Education – Weekend day trading can also consist of immersing yourself in educational resources. There are now courses, webinars, books, ebooks, podcasts, as well as a host of useful websites available. All can be used to learn about a new strategy or build on your market knowledge.
3 Top Tips for Weekend Trading
Whether you’re interested in currency, stocks or futures weekend trading, there are a number of useful tips that can help you avoid pitfalls and potentially increase profits. These include:
1. Check Spreads
Because spreads often widen as a result of reduced trading volume and liquidity, finding a competitive broker is even more important. In fact, spreads can be particularly large at the close and open of trading on weekends, due to low liquidity. So, look for broker’s offering competitive spreads at weekends.
2. Tackling Slippage
Low liquidity and the possibility of gaps during weekend trading can lead to slippage. To combat this problem, use market range or maximum deviation features available on certain platforms, such as MetaTrader.
These features enable you to decide on a maximum potential slippage that you are willing to concede. Set it to zero, for example, and you won’t have to suffer any slippage.
3. Utilise the News
Weekend day trading brings with it unusual trading behaviour. Much of the volatility and activity will be driven by news announcements. So, stay up to date with any news events relevant to your market. Financial Juice, CNBC, and Yahoo Finance are all sensible sources.
Although often overlooked, there remain plenty of opportunities for those looking to start day trading at the weekends. Forex and binary options are both accessible from Friday evening to Monday Morning. In addition, markets in the Middle East offer the volatility and volume needed to generate earnings.
However, you will need to amend your normal strategy or employ a weekend-specific plan. Alternatively, if you don’t want to actually trade, you can use the weekends to further your trade education and prepare for the upcoming week. There are courses available, plus all of the resources outlined above.
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