The Builder Feature when Trading Binary Options
The Options Builder is becoming a common feature offered by binary options brokers, as it offers traders a better control of their moves. An Option Builder provides the chance to build personalized trades and allowing many different types of trades to be produced at any given time. Some think that Option-Builders are only valuable to advanced traders. But this is wrong as an option builder may be even more valuable for beginners. The crucial step at binary options trading is to test any builder with small trades before you execute large trades and by this way accept high levels of trading risk.
Options Builder Common Characteristics
Option Builders are varying from binary options broker to binary options broker, but there are also many similarities between different platforms. Here are some common choices when building your trades using a builder:
1) Type of the Trading Instrument
The trading instruments include High / Low Options (the same as Put / Call), Boundary or Range Options, One Touch Binary Options, etc.
2) Type of the Underlying Asset
The available markets include Forex, Stocks, Indices and Popular Commodities
3) The Expiry Time
Traders may use various expiries (usually 60 seconds to 24 hours)
4) The Accepted Level of Risk
Traders may choose the desired level of risk that they accept. Always a high risk leads to high return and vice versa.
The Advantages of using Binary Option Builders
The main advantage when using a Builder is that trading can be adapted 100% to your specific needs, skills and experiences. This is extremely important when you are trading using a binary options strategy. An Option Builder allows the control of your risk if something goes bad. That is especially valuable for days when high fluctuations are expected and/or at times when markets are moving without following a master trend.
Adjusting Return According to the Desired Risk Exposure
For example, if you want to trade GBPUSD and you are afraid that the market will probably turn against you:
◘ Adjust your Expected Profit low (ie 40%)
◘ Take advantage of a 50% refund if the trade is lost
Suppose you have placed $100 in this trade. If it goes well, you gain 40% or $40. If it goes bad you will be refunded with 50% or $50. Adjusting between then Potential Profit and Potential Loss can really make the difference especially for beginners.
Option Builder and Trading Strategies
Option Builders features offer the chance of implementing a trading strategy with precision. Trades are adapted to selected strategies rather than trading strategies are adapted to selected trades. In overall, Option Builders offer the opportunity to generate tailored-made trades.
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