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Binary Options Trading Platforms

Binary Options Trading Platforms

What you should know about the different trading platforms

Binary options trading has become a worldwide sensation that succeeds in offering a broad spectrum of individuals the opportunity to invest in the world’s markets. Easily accessible online, this investing route is appealing with its “all or nothing” outcome allowing the investors to easily build their trading pattern and portfolio management.

Currently there are many binary options websites and most of them offer similar trading platform types. In this tutorial we will introduce the most common and customer friendly platforms best suited to your personality and trading styles.

Binary Options/Classic Binary/Classic Time/High Low platforms

There is a huge variety of names and you might see this platform called differently depending on the broker you trade with. The main concept however is the same. It’s Up or Down, Call or Put.  Let’s have a closer look at the example below:
Classic Binaries Trading Platform

Select an asset.From this section you can choose the instrument you wish to trade with. Most of the brokers offer a broad selection of treadable assets such as pairs, commodities, stocks, indices etc. Of course depending on the trading hours some instruments might not be available at the specific time of the day.

Select the option type.Will the EUR go up against the USD or down? Call/Up or Put/Down. The option you select will determine the outcome of your position.

Chart/Box price.The price shown in the graph will not necessary represent the actual option price. The price between the Call – Put boxes is the one you should refer to. The graph is for indicative purpose only and aims to provide general impression over the trend.

Payout. There are variety of factors that influence the payout of the option, such as –liquidity, volatility, time of the day, news etc. The payout is of key importance to build your successful money manage strategy.

Expiry time. Your trading strategy will determine the expiry time of the option. Whether you will be a short term or a long term trader it’s up to you. The classic platform for most brokers will usually offer an expiry of up to 6 months from to the moment you wish to purchase the option.

 

60 Seconds / Speed trading / Speed master / Short term platform.

Select your asset, predict the outcome, wait 60 seconds and voilà your option expired and the results are present.The speed trading platform is the most attractive platform for traders, mainly due to the fact that it offers expiry times from 30 seconds to 600 seconds. Traders take advantage of the market momentum, smallest fraction of the quote is vital and it might be decisive for the outcome of the trade.

Speed Trading Platforms

Touch in Time / Touch & No Touch. 

Clients have the option to select the “touch” or “not touch” tools, depending on whether they believe the price would reach the provided pre-set rates .

Touch no touch

Each position expires on an hourly basis or more (depends on the broker), and clients may open positions up to 15 minutes prior to the expiry time of an option.

One Touch. 

Option’s payout rate is determined by the pre-set target price.

One Touch Style Trading Platforms

In some One Touch platforms, you can only purchase an option whenever the market for the given asset is closed. Meaning that you can trade during the weekend. This platform offers the highest payout rates, however at the same time it’s the platform with the lowest success rate. In most cases the predetermined price is way higher than the current rate and the chance to be in the money is lower in comparison to other platforms.

Pro Option / Pro Master Platforms.

Say goodbye to Meta Trader 4. Many of the brokers out there have already developed an advanced trading platforms with integrated indicators and eye-catching candle stick charts. No download required – everything you need is available in your account. Pro option platform types usually comes with the full package. Here you can build your successful trading strategy without installing additional software.

Pro Option. Trading Platforms

Pro Option Indicators Trading Platforms

Advanced settings of Pro Option platform. Indicators list.

Tools and terminology
As a beginner trader you must have sufficient knowledge of the terminology and trading features associated with binary options trading.  There are several terms that are must to know for every “binary” rookie.

Call/Up option – you profit when the price of the underlying asset rises relative to the price it was purchased at. Usually displayed in greenish color.

Up Call Trading Platforms

Put/Down option – you profit when the price of the underlying asset falls relative to the price it was purchased at. Usually displayed in reddish color.

Down Put Trading Platforms

Quoted price – the price quoted represents the price at which the broker sells the asset, and not the actual market price. So whenever you compare prices between different brokers or feed providers you must keep the above in mind and note that each broker may use its own algorithm to determine option’s sell price.
Expiry rate – The expiry rate is the price of the underlying asset at the time – the option expires.

  • In the money – In-the-money refers to a successful outcome. This means that at the expiry time, the asset had gone in the direction that was predicted by the investor at the opening of the trade. In other words you have won the pre-set payout on your investment.
  • Out the money – Out-of-the-money refers to an unsuccessful outcome. This means that at the expiry time, the asset had not gone in the direction that was predicted by the investor at the opening of the trade. In other words you have lost your initial investment.
  • At the money – At-the-money refers to coming out even. This means that the value of the option is the same at the close, as it was at the opening of the trade. The initial investment is returned back your account, regardless of whether you predicted a rise or fall in the value of the option.
  • Mid-market – The mid-market price is the average between the ask (buy) and bid (sale) prices. It refers to the actual market price for the asset, with no spread. Most of the brokers use (bid price + ask price)/2 to derive the value of the option.

Roll Over – most of the brokers have this feature available in their platforms. The tool allows the extension of expiry time of an option. You should be aware that this in most cases will cost you some percentage of your initial investment. The feature is only available when you are out-the-money.

Roll over Trading platforms

Roll over 2 - Trading platforms

Once you confirm the roll over your trade will be modified according to the new expiry time and the new investment amount will be adjusted accordingly. The payout however will be based on the initial investment.

Double up / Redouble – Regardless if you are in or out-the-money you can double up your option at any time. This feature creates a duplicate option with same investment, expiry and payout as the previous one. The only difference is that the new option entry rate is the current option price and not the entry rate of the duplicated option.

Double up.Trading Platforms

Double up 2.Trading Platforms

Buy me out / Sell – The “Buy Me Out” Option tool helps minimize risk by giving you the option of being bought out mid-trade. It’s available on all major assets until one hour prior to expiry. Some brokers have platforms with “buy me out” indicator appearing in the asset’s graph. The buy-out price is determined by the many factors – expiry time, entry price , current price, payout etc.

Roll over Trading platforms

Buy me out Trading Platforms

These are the main binary platforms and the most common features associated with binary options trading. Depending on the broker you may find short discrepancies in the terminology.

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