Binary options builder tool is offering traders to customize and make their own trades from start. Basicly, you have a control to choose which asset, what expiration time, risk settings you are comfortable with and the amount to invest into. In theory, this is the best thing that can happen to a trader and least risky since you are in control of what is going to happen.
WHAT YOU WILL LEARN HERE:
- What is binary options builder tool?
- Why is it bad and why is it good?
WHAT IS OPTION BUILDER TOOL?
First step is simple since you just have to pick the asset you wish to trade. On the next step is where it is starting to differentiate from normal binary options trading. In normal setup, you would just click on the list and choose the expiration time while here the idea is to choose in a list of hourly, daily or weekly expiration time and also the minutes you want. This can be put into good use for traders who rely on news since you can close the trade before the news will come out so you make sure the investment is in safe place. It also comes in hand for traders who like to trade over night. Next or third step if you would have been trading normally, you would see one outcome or percentage of reward while with this tool you can pick from different outcomes that of course affect the payout or profit you will be able to get from the specific trade. It is reasonable that the lower you will want to risk, the lower be your reward at the end. After you have choosen and go through these steps, only thing that is left is to choose the amount you are willing to invest and start trading.
Let us take a look at the picture for example. We have choosen the asset that will expire in 3 hours and 10 minutes from the start of a trade and it will give us 62% of profit if the trade is going to be profitable and 20% if it is going to be a bad investment.
WHY IS IT BAD AND WHY IS IT GOOD?
In theory the tool is very good since who would not want to setup his own trade and profit from it. But if you login into your brokers platform and check this tool you will see it is actually very limited and not as described. All the options are preset and very limited. There is a room for imporvement of this tool to work as they describe it because it is definitely not working now as it should.
But on the other hand there is some advantage for traders who like to trade short term since it allow them to trade over the night. As you can see, majority of binary options is to trade through the day but with this you can trade over night if the market is open the next day of course.
At first it felt like this is something that could benefit all but after using it and trying it out, for now it has far too much limitations to be worth of use. Maybe if you ahve some special strategy setup for it, then yes. Otherwise i would suggest to use normal binary options for now.