IQ OPTION POSITION TOP-UP - WHAT´S THE NEW FEATURE LIKE?
This feature enables traders to use their available account balance to support an open position which may have run into a larger loss than originally anticipated. Traders are now able to trade with a stop loss that exceeds 95% of the amount originally invested. (A stop loss order is used to automatically exit a losing position when a certain price level is reached or when a position reaches a certain drawdown (either percentage-wise or money-wise). Traders who trade with IQ Option can choose between these three options or the ‘Position Top-up’ option. Here is a practical example of how this new feature works:
A trader opens a new forex, crypto, or CFD position and invests a certain amount of money in this position. Instead of attaching a ‘hard’ stop loss at a certain price level, percentage, or amount, the trader selects the ‘Use Balance to Keep Position Open’ option in the ‘Auto Closing’ tab. Here is a screenshot:
If the market moves against the trader and exceeds a drawdown of 95%, 20% of the original amount invested will be reserved in the trader’s account to sustain the drawn down position. If the market turns around and the loss returns to -94% or less, the reserved funds will be made available again in the trader’s account.
This feature enables the trader to stay in a position for longer which may be beneficial, especially in extremely volatile market conditions. In certain cases, traders may get stopped out just before the market reverses and heads into the direction which they originally anticipated. The top-up function may help to avoid this type of situation.
This ‘Position Top-up’ function is now available to give traders the extra backup they need when the market moves against them and provides them with more control and flexibility with their trading.