Many binary options brokers now offer an Option Builder, or similar trade customization feature. What this feature provides is the means to create a new trade using the exact parameters you wish to select. All platforms do provide a current list of pre-designed options that can be purchased, but at times, traders may not wish to utilize these. At these times, the trade creation tool can be used to set up the type of trade that is desired.
Using the Option Builder
There are some limits to this feature. For example, it would not be possible to select an underlying asset that the broker does not offer within their asset index. Minimum and maximum investment amount rules will also need to be followed. Although there are some restrictions, all of the available instruments, optional features, assets, and expiry times that the broker does provide will be available for selection. This fact alone means that the possibilities are virtually endless.
One of the main benefits associated with this feature is the fact that risk levels can be better controlled via customization. As different parameters are selected, traders will be able to see how to offered payout rate fluctuates. Lower offered returns are linked to lower risk trades, with the opposite applying to higher payouts. This knowledge alone will go a long way in helping with trade creation in relation to risk appetite.
Use of this feature is similar to standard trading within the provided platform in that it will still be necessary to select an instrument, underlying asset, expiry time, and investment amount. Note that not all instruments may be available for selection. The standard Call/Put trade will be an option, but high-yield trades such as One Touch likely will not. Other optional features such as Sell, Double Up, and Rollover may only be accessible in the trade builder area. As with all things related to a binary options platform, it is wise to learn how to use Option Builder prior to actually using it.
Those who plan to use signals may need to use this tool as a means to enter into signal-based trades. When a trade alert is delivered, it comes with very specific information for taking the trade. There will be times when a matching option is available within the listing of upcoming trades, but if not, trade creation is likely to be the only way to create an exact match. Signals can be an effective way to boost earnings, but they can only do this when they are used as instructed.
Often, Option Builder is viewed as a feature that should be exclusively used by experienced traders. While a first-time trade may not want to use this feature, it can be put to use rather quickly, within the first week or so of trading. There really is no wrong time for its use, so feel free to utilize it at any time. Variety within a binary options platform is extremely important, and this feature provides access to nearly everything that a platform has to offer.