The binary options market is pretty new, but it’s already begun changing in order to make it more attractive and helpful to the average trader. Many professional level traders have been skeptical of binaries because of features perceived to be unhelpful. For many, this was true, but there have also been some misconceptions within the marketplace. Now that the industry is a few years old, though, accommodations have been made to help more people. Let’s take a look at what some of these updates have been and what they achieve.
These have been around for a while now, but they are finally starting to catch on in popularity because of the fact that many brokers now also have high yield trades in this category. The boundary and one touch trades were not that helpful to most before, but not that you can get 300 percent or more in returns with the high yield choices, they are extremely helpful, granted that you are correct in your predictions. The good news here is that you do not need to be nearly as accurate in your predictions with high yield options to turn a consistent profit. Still, discretion with these is called for because they are hard to predict correctly. You need to have a special set of circumstances to trade these profitably. When you do, these are very helpful to increasing your earnings.
Ending Trades Early
One of the big innovations, and a response to critics that have a problem with the all or nothing nature of binaries, is the ability to end your trade early. This is always done at a cost, but for those that see trades not going their way, it is still a good resource to have. There are two sides of this: ending early when you are out of the money, and ending when you’re in. If you call a trade early and you are out of the money, you will still see a loss, but not 100 percent like you would have if you had let the trade go to the expiration point. Ending a trade when you’re in the money will cut back on your profit rate.
As you can probably guess, these should only be used in extreme cases, and only if there is no better choice. These are advanced techniques, and as such, they apply mostly to traders that have a lot of experience. They’re a great thing for traders that might have been trading binaries for a while and were getting frustrated with their broker, and they are a feature designed to help bring more advanced traders into the industry as well.
This feature gives you a reward even when you’re incorrect in your prediction. Normally, you might be getting an 80 percent return on a correct trade, and lose everything on an incorrect one. But with a rebate on your misses, you would get something like 62 percent on a correct trade and 15 percent cash back on an incorrect one. This is not for everyone, but should be a huge help to beginners especially. It accounts for the possibility that you will be wrong once in a while and gives you a slight cushion if you are wrong more often than a pro would be. The downfall is that you typically get paid less when you’re correct here. Before you take this choice, make sure that you are not losing out on overall profits by taking the lower return rate when right.
Create Your Own Trade
Brokers have different names for this. Sometimes it’s called Option Builder, or Option Pro, or something similar. Whatever it’s called, the ability to create your own trade is one of the best things a broker can give you. You pick your underlying asset, when it will expire, and the amount you want to risk. That’s all you need to do. It’s incredibly simple, but it’s incredibly helpful. It gives you complete control because you are no longer restrained to the drop down menu that the broker supplies. You don’t have to choose from something that expires at an arbitrary time, but a time you decide. This has the power to revolutionize your trading when you use it right, especially when you have knowledge of upcoming announcements or something similar. Using this gives you the control, and not the broker, and the more you can customize your own trading, the bigger the advantage you have.