The most commonly traded binary option is the Binary Options Platform. A few years ago many brokers were only offering this one method for trading of Binary Options when they first appeared, and it quickly became a firm favorite among the trading community. Binary options have rapidly gained in popularity, paving the way for many more methods for trading in them, but this article aims to keep it simple, so we will only be discussing the original version of Binary Options trading.
The Basic Principle of the Binary Options Platforms
Using this platform allows a broker to connect a trader to the complete asset offering. It provides for a central platform that allows for the trading of currency pairs, stocks, indices, and commodities. The four steps of placing a trade are epitomized in this one option. An asset must first be chosen by the trader. Then the trader must decide on the direction in which the asset is going to slide, subsequently followed by the time of expiry, and then finalizing by deciding on the amount for the trade. Everything is very quick and simple, but lets have a look at how this option is different to other forms of trading.
Regular Binary Options
– Allows for greater flexibility in managing risk. Price, asset, direction and time can all be changed
– A low minimum trade offered by most brokers on this platform. $25 is a fairly standard rate, but you can find brokers who have lowered it to as little as $10
– Expiry times of offers have large ranging values; 15 minutes – all the way up to months
The regular binary options platforms provides for an outcome similar to a real options trade, as traders have the capability to guide the trade in ways that other Binary Options platforms do not. As an example, a 60 seconds trade does not give you the ability to choose the expiry time. Trading on the Option Builder platform will not give you the ability to choose an expiry time as low as 60 seconds. All of these options have their reasons for being available, and the reason the Regular Binary Options Platform is available is because it closely mirrors options trading.
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