The IQ Option Trading Platform has a lot to offer you, it’s easy to see and forget about certain features that will improve your trading performance if used properly. Today we will talk about Take Profit/Stop Loss, Market-on-Open, and Trailing Stop Loss – three features that both old and new features should look more closely.
1. Take Profit/ Stop Loss
While the other two features are not necessary, this feature is very important for long-term traders. Take profit/Stop loss is an order that automatically closes the transaction when the potential asset price reaches a predetermined level. It can be used to take profits and stop losses. In other words, these features are used to get rid of the market at the right time without interference from you.
Use Take profit/stop loss when you want to balance the value, which means you get the maximum profit possible and not lose too much. In fact, it is difficult to achieve a perfect balance. But remember, practice makes perfect. Continue the experience with the values in the commands to achieve the best balance.
This feature will allow you to open buy and sell orders even when the market closes. Of course, it can only be applied to non-traded assets 24/7, known as Forex and Contracts for difference. The currency pairs (potential assets in the foreign exchange market) are not traded on weekends. The contracts for difference (CFDs) are not traded on weekends and evenings. Even when the transaction is closed, the price of property can still change and sometimes change significantly. Investors will want to use this tool when they expect the prices will rise or fall sharply when the market opens.
This feature is used differently for derivative assets, as it can only be used once a week for a great currency pair and several times a week for a weak currency pair/ odd company. As long as there are no national central bank announcements at the weekend but only sudden political and macroeconomic events are likely to affect the exchange rates of national currencies. For publicly traded companies, the number of events that may affect stock prices is higher.
3.Trailing Stop Loss
Trailing Stop Loss has the function and mechanism of working closely with the often stop loss/take profit. However, the way it works is a bit different. This difference makes it a special tool that can significantly increase your trading results if applied correctly.
When Trailing Stop Loss is not used, the negative threshold is calculated as a percentage of the opening price and can be as low as -95% (sometimes even lower). When the trend is favorable for you, the deal will not be closed until the current price falls below the open price. Trailing Stop Loss will automatically move your stop loss down (in case of BUY option) or up (in case of SELL option). In other words, the deal will close when it creates a certain profit, but the trend is about to be reversed.