IQ Option offers leverage with some tradable assets, while some assets may not have the leverage option. The leverage may depend on the type of asset instrument.
This article will talk about the IQ Option leverage and IQ Option without leverage and how you can use it as an investment multiplier. We will also talk about the leverages for different assets such as stock, indices, crypto, and commodities.
See here our explanation video:
See the leverage on IQ Option here:
| International Traders leverage: | |
|---|---|
| Forex: | Up to 1:1000 |
| Commodities: | Up to 1:50 |
| Cryptocurrencies: | Up to 1:100 |
| Stocks: | Up to 1:20 |
| Indices: | Up to 1:150 |
| ETFs: | Up to 1:100 |
(Risk warning: You capital can be at risk)
What you will read in this Post
What is leverage?
Before we talk about IQ Option leverage options, what does leverage mean? Leverage is the act of borrowing an amount from the broker to magnify the investment to increase profits. Even though it can maximize profits for Investors, it can enormously magnify losses as well.
Therefore, a small amount is put in, which is known as ‘margin.’ A binary broker has some regulatory conditions which affect the amount of leverage amount a client would receive. A trader must take the leverage amount that meets their investing goal as well as does not affect much if lost.
An experienced trader would use less leverage depending upon the market too. Usually, a market is a decider of how much leverage a trader uses.
While volatile assets such as Gold, Bitcoin trades with a minimal average, whereas less volatile assets such as EUR/CHF pair can use high leverage levels
How is leverage important for trading?
Using leverage decreases the capital amount that a trader has to invest since the broker adds to the capital. This is an excellent way of trading as your capital can get impressive magnification, and even if you do lose the trade, you will reduce your losses.
This tool is the most efficient tool when it comes to increasing profits and raising margins to the following levels.
There is always some shift in the price of an asset which will, in turn, bring more profit just by a margin too. However, the losses might increase too if the ratio rises too.
You can buy unaffordable assets through this method that you would not buy otherwise. This is an excellent way of experiencing the movement of different assets in the market.
(Risk warning: You capital can be at risk)
IQ Option leverage provided for Non-EU countries?
A notable cryptocurrency CFD is offered to Non-EU and EU traders by the IQ Option platform. For example, BitcoinX100 has a leverage of 1:100. They not only have better leverage compared to standard CFDs, but they also have tighter spreads and expiry on a daily basis.
Crypto leverage:
These are the most volatile asset in the global stock markets as compared with other assets.
Even though it is not as liquid as forex, the IQ Option provides a limited value on the leverage for CFDs to 1:10 for Non-European traders.
Forex leverage:
Forex is not as volatile as the stock and cryptocurrency markets, which is why they have liquidity and significant trading volume. IQ Option allows 1:1000 leverage for Non-European traders.
Levels of leverage in option by IQ Option are X25, X50, X100, X200, X300, X500 and X1000.
Stocks leverage:
Stock markets are at the top these days, which have a fantastic return on investment and opportunities for trading. This feature makes the brokers gain value in the eyes of traders since they have such a wide choice of assets that can be traded from one single platform.
Non- European traders can trade with 1:20 leverage.
Commodity CFDs:
Commodities such as silver, gold, crude oil, platinum, corn, and some others are available with the IQ Option. Non-EU traders can trade with a leverage of 1:50.
ETFs leverage:
ETF stands for Exchange Traded Funds, which is also provided by IQ Option.
Non-European clients can increase their deposit value with a leverage of 1:100.
Stock indices:
Stock indices offered by IQ Option are available for trading by Non-EU traders. Non-EU traders have a leverage of up to 1:150. This leverage is enough for trading indices as indices are one of the most volatile assets in the market.
Therefore, 1:150 is the best bet for increasing profits/losses.
Majorly, IQ Option has more than ten stock indices from countries such as the United States, the United Kingdom, Germany, Australia, France, Japan, Spain, and Hong Kong.
(Risk warning: You capital can be at risk)
How to change leverage on IQ Option?
This is how you change leverage on IQ Option, follow these three steps:
- Taking EUR/USD as an example of a forex pair, the second-highest leverage available for them is x500, which is similar to 1:500 non-EU traders.
- Therefore, a client who uses this option would be able to trade with a value that is 500 times more than the deposit amount.
- For example, a trader puts $10 to buy EUR/USD pair and selects the investment multiplier “X500” to purchase it. Therefore, his previous balance of $1000 gets reduced to $990, and his position’s value changes to $5000 because he uses 1:500 as leverage.
Conclusion: High leverage is available on IQ Option
Clients must constantly be guarded and careful while using the leverage option, as they can magnify losses just like they increase profits. Leverage acts as borrowed money offered by the broker platform whenever a client trades in prominent positions under normal conditions. The minimal amount of money put into trade acts as a deposit from the trader, which supports the leverage too.
Therefore, traders should always exercise caution and must gain as much knowledge as possible about leverage and about maximizing profit without risking their capital investment.
(Risk warning: You capital can be at risk)
