Before starting, you need to set a time period before you can perform an operation. When the time period ends, the price of the asset will be higher or lower than the price fixed from the beginning. If the prediction is correct and the price of the asset at the end of the validity period is on the correct side of the initial price or strike price, the trader will receive a refund. In case of an incorrect forecast, the invested amount will be lost.
Typically, when investing in assets, investors tend to buy a number of shares.
This is what we mean when we say that someone has equity in a product or that an investor is a shareholder in a company. The price of an asset is measured by the price of an individual share. Profit is obtained when a trader resells his asset at a higher price than the one at which he bought the asset from the beginning. Likewise, a loss will be incurred if the selling price of the asset is less than the price at which it was purchased.
This type of negotiation requires a deep understanding of a wide range of variables in IQ Option. For example, a trader will need to study the past performance of an asset, how this asset reacts to market events that cause a change in its price, and, more importantly, in terms of investment placement, make predictions. A downturn in the market is not unusual and we can see in the news how much change is happening in the global financial markets every day. To make effective use of all of these variables, an operator who manages to place a successful transaction after a successful transaction knows and understands changes in asset prices and has a resource of trading strategies that can be quickly applied in situations outlined in the sleeve.
Unlike investing in the stock market, when trading iq options, there is no need to buy assets or shares in a business. It was mentioned earlier that your transactions are based on changes in the price of an asset and whether the price of the asset will increase or decrease. In this case, you are trading with an increase or decrease in the price of the asset.
Look at gold products that have such a high market value that few people buy gold stocks. If you are trading in the binary market, you do not need to buy gold, you make predictions and invest depending on whether the value of gold will rise or fall.