Binary trading and trading in general has a number of famous strategies, one of which is the Martingale. Many people love it and use it often, while others don’t recommend it.
Our role here is to help you understand whether Martingale on IQ Option is interesting.
Is Martingale on IQ Option worth it?
If you’ve just started studying binary options, you’ve probably heard of Martingale. It’s a widespread strategy discussed by experienced users in IQ Option trader groups, forums and communities.
But do you know what Martingale is and how it works on IQ Option? If you don’t, don’t worry, just follow this article to the end and we promise you’ll know at least the basics to decide whether or not this strategy is right for you.
And if you already know this strategy, stay with us too, we’ll go a little further than the basics to help the more experienced with this special strategy on IQ Option (Martingale).
What or who was Martingale?
Although this term suggests a proper name, there is no record that Martingale was a person, but that it was the name of a set of strategies that French gamblers began to develop in the 18th century.
Initially, a martingale consists of doubling a bet after losing the previous one. Let’s say: in a heads or tails bet, the chance of one side of the coin flipping is 50%, so the recommended payout is 2 to 1.
Having lost R$10 reais on the first bet, the player places a second bet with the amount doubled, i.e. R$20, and if it wins, he recovers the R$10 lost on the first spin and still profits R$20.
But if this second bet also loses, he can make a new martingale, this time betting double the amount of the second attempt, i.e. R$40, to win R$80, thus recovering the R$30 lost previously and making a profit of R$10.
Apart from IQ Option, where can martingale be used?
As we explained earlier, martingale is applicable to simple bets such as heads or tails, as well as in a wide variety of casino games, where it has gained popularity to this day.
More recently, it has been adopted in sports betting and also by traders on the financial market, such as IQ Option, where martingale is a very popular strategy.
After all, how do I use Martingale on IQ Option?
Now that we’ve given a bit of explanation and context, we need to get to the point: how do you martingale on IQ Option?
Well, just as we gave the heads or tails example, since in binary options there are only two options, martingale on IQ Option can be done in pretty much the same way as we explained in the example.
Next, we’ll cover some important details that you should note when planning to martingale on IQ Option.
Take payout into account
As in binary options, the payout is not fixed, this is one of the aspects you should pay attention to when martingaling at IQ Option.
For example, if the payout for a particular trade is 90%, if you use $10, the possible profit is $9. You should take this into account when estimating your profits when doing one or more martingales on IQ Option.
Stay focused on your trading strategy
You may have already realized that martingale trading on IQ Option can take a heavy toll on your bankroll if you make consecutive losses. This is a mathematical issue, as the value of the next trade is usually double that of the previous one.
For this reason, you need to be very careful when martingale on IQ Option. It’s very important that it’s based on analysis and strategy, as too many consecutive mistakes can do a lot of damage to your capital.
Therefore, set up your trades with plenty of background to plan and execute this strategy. If you’ve never tried it, we recommend using the simulator, which can save you from losing a lot of money.
Maintain emotional control
As we mentioned just above, running the martingale on IQ Option can quickly involve large amounts of money, which is very easy to handle when trading on the demo account, but on the real account it’s a different story.
As this strategy can involve a lot of progressive losses, it’s very important that you keep this in mind and be prepared for such a situation, as losing emotional control while trading is one of the worst things that can happen to you.
When martingale trading on IQ Option, follow a well-founded trading strategy and avoid any distractions. As entry windows can be short, it’s crucial that you monitor them closely and execute your strategy according to plan.
Main risks of Martingale on IQ Option
At IQ Option, Martingale is an excellent way to win often, since with a single hit you can recover a sequence of unsuccessful trades.
However, as there’s no such thing as magic, this strategy also has its negative aspects, which we’ve briefly mentioned in the previous topics, but we’ll go into more detail below:
Martingale on IQ Option can generate exponential losses
The benefit of being able to recover losses in a row can come at a high cost, and this is explained by mathematics. As martingale trading on IQ Option generally consists of doubling the value of the trade, if you have too many unsuccessful trades in a row, you could be close to breaking even.
Therefore, aim to use small amounts in relation to your capital to execute this strategy, otherwise it will only take a few mistakes to wipe out your capital.
Large losses of money are one of the factors that also affect the vast majority of traders psychologically, creating destabilization and undermining their confidence.
In order to avoid the problems related to loss of capital and psychological problems, our recommendation is to create a martingale limit, so that you also gain time and peace of mind to start trading again at a later date.
Anyway, is Martingale on IQ Option worth it?
As we listed above, at IQ Option, Martingale is an interesting way for traders to keep their capital growing consistently, as it allows them to cover losses quickly.
However, too many losses in a row can lead to a large loss of capital, or even bankruptcy. That’s why you need a lot of focus and concentration when executing this strategy.
Martingale trading on IQ Option can be very worthwhile, as long as you read the market and define your strategy. It is also advisable to set a limit on the number of martingale attempts in order to avoid breaking your bankroll.
After reading this article, you can learn how to Martingale by opening a demo account on the IQ Option platform, and get to know the most interesting trading strategies.
