Trader Leader

What Should You Trade? A Smart Guide to Trading Instruments

А quick overview of popular asset types and their unique features, as well as trading styles they're frequently associated with.
An introducing broker's main responsibility is to identify the trading asset that best fits the personality and trading style of its clients, providing them with the best trading experience.

Brokers offer traders access to multiple types of trading instruments and assets, often all available on one platform within a single account. What to choose is a matter of taste, trading strategy and prevailing market conditions.

There is no need to restrict yourself to one single instrument. Different assets can offer different trading experiences.

You can trade multiple assets simultaneously to capitalize on multiple trading opportunities. It can also be useful to master trading in different access in case one of your preferred instrument types is not available, such as Forex, on weekends. In this case, by knowing how different assets behave, you can simply trade another asset and still make some money.
Options Trading

Binary options are best suited for those just starting out on their trading journey, as they are easy to understand and trade.

There are a few types of options currently available on the market. Binary options are best suited for those just starting out on their trading journey. They are quite easy to understand, and you can easily begin trading binary options while you are still learning more complex concepts such as Forex or Stock trading. Digital options work similarly, but offer more flexibility by introducing the concept of strike price and fluctuating profitability.

Choosing the right asset also means choosing the right trading strategies. Some trading strategies can only be applied to assets like binary options, and others will be more effective with Stock trading.
Binary Options

Binary options are considered by many traders to be the easiest way to start your trading journey. When trading binary options, all traders need to do is choose the direction of the price change and click 'Buy' or 'Sell'. If you make a correct prediction, you will receive a fixed profit that is determined before the opening of your deal. In case your prediction was not correct, the investment value is lost. Binary trading is as simple as that. But don't be fooled by the apparent simplicity of this trading tool. The real challenge is to predict the direction of price change correctly. For that exact purpose, traders use technical analysis indicators.

Digital Options Trading

Digital options are a more complex approach to the mechanics of binary options. In binary options, in order to earn money, you must make correct predictions on whether the closing price will increase or decrease in comparison to the opening price. In digital options, you earn money the same way, but instead of making predictions on the current market price, you can choose a strike price, which will be used as reference to determine whether your prediction was correct or not.  The so-called strike price, is a precise limit that the trader must choose before opening the trade. This can be useful when you believe the price will/will not reach a certain level that differs from the current price. There is no defined profitability for digital options, which means you can earn an unlimited amount of money for placing deals correctly by choosing different strike prices. The amount of money you will receive will depend on the distance between the current price and the strike price and the prevailing trend.
Forex Trading (Foreign Exchange Trading)

Forex is the largest and most volatile financial market in the world. No stock exchange can demonstrate a daily trading volume that is remotely comparable to Forex. While trading Forex, you can basically buy different national currencies, which are quoted real-time right on your screen. Forex trading can be done with the help of a multiplier, which helps to proportionally increase both profit and potential loss. When trading Forex, traders close their trades manually as there is no set expiry time. For many experienced traders, Forex is the instrument to go and is considered synonym with trading itself, since it offers many opportunities and different tools can be used.

Most brokers offer CFDs on Stocks, which are basically a contract allowing you to personally profit on the price difference in a stock without actually having to own it. This allows traders to speculate on the price of the largest and most renowned companies in the world. Corporate news, earnings reports and macroeconomic events can trigger a large price swing. Technical and fundamental analysis can help you a lot with trading on Stocks. This asset class is suitable for those who enjoy reading corporate news and diving into the industry of their choice. For stock trading, knowing fundamental analysis is very important and can be quite lucrative.
ETFs (Exchange traded funds)

ETFs or Exchange-Traded Funds are an alternative to stock trading. A collection of shares traded under a single asset, they carry a lower degree of risk and are better suited for long-term trading. The Daily Junior Gold Mining Index, an index that tracks the performance of small gold mining companies, is the only ETF currently available on the platform.

Brokers also often provide CFDs on cryptocurrencies, which can benefit traders looking for cryptocurrency trading. You will often find some of the famous names of the cryptocurrency market, such as Bitcoin and Ethereum. IQ Option offers a wide range of cryptocurrencies, including Dogecoin, a cryptocurrency exclusively created for the sake of the meme.
We hope this small overview helps you understand better how do you want to trade and what you can do to maximize your profit.

You are not limited to these basics, though. There is always room for improvement, and you should seek to learn how to improve your trading by other means, such as using indicators and learning how to use different types of charts to your benefit.

We recommend that you try a few of these various instruments by yourself. This way, you will understand better how they work and will know which one is the most comfortable for you.