Friday, June 7, 2013, AM | 2 Comments
Binary options trading is arguably the most accessible way of entering the financial markets. The initial investment is lower than the one required for trading on the stock market and the risk is not so high if we compare binary options trading to the Forex market where you can incur losses that exceed your initial deposit.
Virtually anyone who has good computer skills and internet access can start trading binary options online, using the services of a binary options broker.
When choosing a broker one of the most crucial aspects that binary options traders examine is the trading platform and its features.
Nowadays most of the binary options trading platforms are web based and some of the brokers also offer a mobile version that is compatible with iPhone, iPad and Android based devices.
This is great because not only you don’t have to download any software to your computer but you are also able to trade binary options on the go.
Security is another thing that traders have in mind especially when they trade with high amounts of money.
This problem is again solved by all major binary options platform vendors with the integration in their products of the SSL protection that encrypts the connection and makes the transactions 100% private and secured.
When it comes to trading tools in the binary options platforms we have to describe those of them that are most commonly presented by the brokers.
The availability of these tools varies from one broker to another and sometimes binary options traders place their deals on more than one platform because of their own trading features preferences.
All of the features listed below are widely used by binary options traders. Some of them are only available in the Open Platform, which is called Meta by some of the brokers.
Protection rate is a trading feature that enables traders to “save” some part of their initial investment in case that the binary option deal is not successful.
Protection rate is considered by many as an insurance and it can equal 0% – 15% of the invested money.
The most common protection rate (also known as Return Loss) that is used on the trading platforms is 10%.
Roll Over is a stop loss binary options trading tool that allows traders to postpone the expiration of an option.
It is used to prevent loss by rolling the trade over to the next available expiry time.
You can use this tool only once per open position and the price for activating Roll Over is usually 30% of the invested amount.
Of course this does not guarantee that your deal will be successful but gives you an additional chance for options that are currently out-of-the-money.
Double Up provides you with the opportunity to double your investment on binary option that is currently in-the-money.
By increasing the amount you actually create another deal with the same rules for the same underlying asset.
Double Up is used to maximize your profits and is available up to ten minutes before the binary option’s expiration.
Buy Me Out – this is a relatively rare feature of the binary options platforms that gives you the chance to sell your option before its expiration.
The price you get is generated automatically by the system and it depends on many things, including the current state of the asset price (i.e. is it going in the right direction or not).
This tool can be used for both stopping a loss, in case the option is out-of-the-money, or for securing a smaller but safe profit when the option is in-the-money.
About the Author
D. Brezinski has been making money online for over 10 years now. His success in Forex and binary options trading allows him to allocate time for the writing of articles that he believes will help binary options traders to become more successful in their dealings. Mr. Brezinski currently contributes to ActionBinary.com where he writes professional reviews about binary options brokers.