Classification of Daytradings in the trading activities

As a day trader to be successful and earn his living, is the dream of many. How realistic is that?

Day trading means that a position on the same day as closed is opened. This is the only valid definition, the position for hours, minutes and even seconds can be kept within the day’s range.

For the very ultra short-term trading in the seconds to minutes, the term has also scalpingnaturalized (the trader scalpt short-term price swings off), but there is one principle for day trading.

The main reason for daytrading is located in avoiding gaps, so price gaps that can develop overnight each value. These price gaps can be in favor or against a received position, but they can not be calculated in each case, which is compensated by day trading.

Classification of Daytradings in the trading activities

Traders and investors may hold positions for weeks, months and years, this so-called position trading can be very profitable and are relatively low-stress after a certain point. It requires, however, certain conditions. First, the choice of trading instruments is crucial, because while day traders for reasons of money management deal almost exclusively with highly leveraged derivatives that can expire worthless by a Overnigth gap, position traders prefer low leveraged derivatives or equal to the actual underlying, that is primarily a stock or a commodity -Future.


Most likely the difference between position and daytrading basis of one share and one depicted on it derivative is to be understood. When you buy a blue chip as pure shares, or about the stock of a DAX company can assume that they do not expire worthless in the coming years. The Blue Chip has its status as particularly valuable paper within the thirty Dax stocks, because the company is so strong that bankruptcy and a worthless expiration of its shares will be excluded at this stage. So if the stock suffered a one-day gap, it may perhaps fall to two or three percent there, but it is not worthless. By the way, it can also increase by that amount overnight. The investor can ride out this Gap.

But if it is a derivative – a CFD or a knock-out – bought these shares, which can move by 100 percent on the trading well, this derivative may also fall overnight by 100 percent and thus be worthless.

By contrast, the trader can by plus500 review a stop loss hardly protect in principle. There are various hedging strategies against this, but these fall out highly complex. Logically appear daytrading. The derivatives are bought on the trading day and sold before the close in any case, regardless of profits or losses .

Especially relatively low-capitalized traders with accounts between a few hundred to a few thousand euros can hardly act differently if they want to see a result of their actions. If these traders, however, bring a lot of patience, they can operate Position Trading with low leveraged derivatives and a certain strategy.

On the other hand, operate the Trader also working for banks and hedge funds with derivatives daytrading. That is precisely criticized (Warren Buffet: ” derivatives are weapons of mass destruction “) because here millions of dollars are used, the highly leveraged involve high risks. Much of the financial crises since 2007 has been caused that.

Classification of Daytradings in the trading activities

First, the benefits are briefly described and then the necessary action will be explained. The benefits include:

  • No risk by Overnight Gaps
  • Gains realized on the same day
  • Losses remain under strict control
  • Act with relatively low capitalization possible
  • Derivatives trading in the Forex market possible

The risk of overnight gaps is difficult to classify and understand only with some experience. If you want to get an idea about it, you look at some forex values such as EUR / USD, EUR / GBP, USD / JPY, EUR / JPY or GBP / USD. Also, the Dax is very interesting, it is often used by many trading newcomers for the CFD or knockout trade, by the way wrongly. There are much better values also and especially for day trading.

If you look at these values now on a five-day chart, you will notice that the values have occasionally ended this detailed etoro review provides in the evening somewhere else when she opened the next morning. With this, the opening of the German stock exchange is meant. There are some brokers that allow overnight trading in the forex area, but first you have to sleep sometime, secondly, there is currently little experience with whether the overnight trade connection works really well to an American or Japanese stock exchange.

Many traders prefer a German broker with German support or traded on German trading centers such as Stuttgart derivatives. There you can trade from Monday to Friday from 08.00 until 22:00 (but not every security) and the stock exchange between 9:00 a.m. to 8:00 p.m. over the counter. We recommend always exchange trading with buy and sell stops, because any broker falls at some point in time, if only for minutes. If the order is placed at the stock exchange, it is still triggered. So you can stop-buy plan your actions and stop loss, namely intraday.

Those who book a lot of values that can ride out the overnight gaps with derivatives theoretically because some gaps be in favor of the trader. But sometimes markets plunge overnight off completely, which was, for example, after the Fukushima disaster like this. On Monday morning, 3/14/2011, no traders in the world wanted to have derivatives in the portfolio, unless short positions on the Nikkei (the Dax fell well off).

When day trading a position is posted, according to chart technical point of a positive development can be expected within the next few hours by the. Then, the position is secured with a stop loss to recommend are about 10 to 20 percent below the entry, which in turn should represent one to two percent of the total available capital .

For example, IQ Option is nice

Option IQ is one of the most popular virtual broker for binary options. The active accounts exceed eleven million, and the scope of overall daily options is around a million and a half. Numbers of note, for a trading platform officially registered in 2013, just three years ago. As reported on dedicated Internet pages and in the information confirmed by the distribution channels in the industry, Get honest Ethereum code opinions and ratings the brand has climbed the popularity ratings of up to achieve remarkable results.

Ethereum Code and IQ Option

For example, IQ Option is an official partner of Aston Martin Racing , and the sponsor is beginning to take root even in the sphere of Formula 1 and other sporting contexts. In addition, the platform has been awarded major international awards , promoted by organizations of trading industry as Jair Show FX World and Masterforex-V Academy.

Based on the registrations on the App Store, IQ Options has earned the title of the first trading app for distribution in 28 countries (including Italy, Germany and Great Britain). One can say that the reputation is well deserved: with a fully functional graphical user interface and an impeccable service, in addition to the reliability of payments and transparency of the dynamics, to find significant flaws in the coordination of the opportunities offered by IQ Option is revealed right from the start a business.

Open an account with IQ Option


The company from which the website is administered for the European section, is the Iqoption Europe Ltd. , headquartered in Cyprus, more precisely at Silver House Business Center, 19 Spyros Kyprianou Avenue, 3070 Limassol. There Wondering if IQ Option is a scam are plenty of more in-depth legal information: the license number for the Cypriots registrars is 247/14, while the company’s identification code is 327751.

Data on the remaining concessions (for example those issued by the Netherlands, France and other European nations) are available on a dedicated page on the website, easily accessible. They also provided e-mail addresses for support, accessible not only by members of the site , but also for the simple request for information.

The contact data and legal recognition, as just mentioned, are complete , without the exclusion of the phone number (omitted in the case of some other brokers). Within this article the IQ Options functionality will be deepened with an evaluation objective and comprehensive , in order to highlight clearly the strong points and weak ones, in spite of the latter are almost negligible compared to the benefits.

Investing with binary options: how it works?


The concept behind investments binary options is as follows. They invest the sums of a prediction, which relates to the value of a specific financial instrument the expiration of a predetermined time interval . Warning: it is not necessary to define a precise value; it is sufficient to indicate whether this will be higher or lower compared to the reported value for the moment in which it confirms the bet.

If the prediction proves correct, the investor earns, in addition to the invested amount, an additional percentage . The term “binary options” actually comes from the field of possibilities offered by the platform, restricted to only two choices. Clearly, following the preliminary analysis, such as investment dynamic binary options may seem related to gambling.

In fact, contrary to the claims by many fans in the industry, this form of use of economic resources requires some skill (just like the forex trading at iFOREX ), which do not concern the simple luck. This does not mean, however, that it is impossible to approach the world of investing through binary options; on the contrary, this interesting source of income is understood in some cases as a good springboard .

This is useful, in fact, for learning a first distinction between the various types of financial instruments . In this regard, IQ Option has many features aimed at education users, but also help in the interpretation of the markets in real time (so-called indicators, better treated during the next few paragraphs of review). The price of each operation can vary on the basis of preset cuts: also in this case the choice is wide, you can perform the input in a single turn with a few Euros, but also with much larger digits.

Open an account with IQ Option


How do I register, deposit and withdraw my money? IQ Option pays correctly?


Registration for the IQ Options trading platform is simple as much as the dictates of binary options. You must first provide personal data so accurately is essential not to make mistakes during this step, if you want the recording operations at the site are to be successful.

Please note that some seemingly unnecessary information (such as social security number) are requested by such sites to check for citizenship ; They can, in fact, that in some countries the investment transactions made possible by the site are legal. After creating your account you must make an initial payment, the lower limit of which is 10 €. Subsequent payments will not be bound by the rigid starting impositions .

It is advisable not to limit their funds in such a small sum, in order not to risk the complete loss of the capital after a few rounds. As for the collection of their claims, the channels are granted cards belonging to Visa and MasterCard , Neteller and Skrill platforms and WebMoney.

IQ Option pays sums that traders have earned if those require IQ Option withdrawal. The repayment happens in three different stages that are visible personal account. These are the stages Question, processing, Processed. The entire procedure lasts pick three working days .

If you need more information about the payment of the levy and you can read our extensive article on ‘ IQ Option withdrawal .