A high-quality binary options broker will offer an extensive catalogue of indices, commodities, Forex currency pairs and stocks – also referred to as underlying assets. These assets form the foundation of all trades entered into, with most traders having their own preferred set/types of assets upon which they will focus their efforts.
Binary Option Contracts
The binary options contract represents an investment whereby the result can only go one of two ways, meaning that the trader will finish ‘in the money’ or ‘out of the money’ accordingly. The only exception being in extremely rare instances where the asset value at the expiry time is exactly the same as when the contract was entered into, in which case the invested sum is returned. These contracts can last from under one hour to a full year or longer.
Forecasts and Predictions
A trader must successfully determine whether the price of the asset/s of their choosing will rise or fall prior to the contract’s expiry time. If they believe the price will fall, then they will enter a ‘put’ option – if they see the price increasing, they will enter a ‘call’ option. A combination of extensive knowledge and professional gut instinct can help guide investments in the right direction.
Option Stars offers four unique special features for Digital Trading, in order to give traders the added ability to more effectively manage their risk, which are as follows:
- Close Now
Our ‘Close Now’ feature gives traders every opportunity to both effectively minimize losses and maximize potential profits. In an instance where any given trade is fundamentally not going as the trader expected, they will have the option to end the trade at their own discretion for their own financial benefit.
If for example a trader was 45-minutes into a one-hour trade only to see that the asset price is now in a state of decline following a period of acceleration, the ‘Close Now’ feature could be used to ensure that a profit is made. By contrast, the ‘Close Now’ feature could be used after noting a steep period of decline in order to minimize losses.
- Roll Over
Also offered as a means by which to maximize flexibility and financial benefit for traders, our ‘Roll Over’ feature makes it possible to extend/delay expiry times for a better chance of coming out successful.
In this instance, the traders in question may find that 55 minutes into a one-hour ‘call’ option, the asset price hasn’t quite reached the necessary target. However, the trader firmly believes that given more time, the price would indeed rise as predicted and thus yield an in-the-money result. They would have the option of paying the required fee to use the ‘Roll Over’ feature, extending the expiry time accordingly and giving the asset price more time to increase.
- Double Up
A feature created specifically for taking potential winnings to much higher levels, ‘Double Up’ gives traders the opportunity to capitalize on trades that appear to be heading in the right direction. In short, to use the Double Up feature is to have a second identical trade opened as the in-progress trade, though at the market price at the time the feature is used.
In a working example, a trader may have staked $100 on gold which has a strike price of $1,300. 50 minutes into the one-hour ‘Call’ option, the price has been steadily rising and the trader is confident that this will continue. At this point, they could choose to ‘Double Up’ which would add a second identical trade to their active trades. This would however be different in accordance with the strike price at the time – if the price of gold had increased by $5, the strike price on the duplicate $100 option would be $1,305.
- Trade Insurance
Last up, OptionStarsGlobal is proud to offer a highly-valuable ‘Trade Insurance’ feature, which as the name suggests allows traders to protect part of their investment. Trade Insurance can be enormously effective in minimizing potential losses, which involves agreeing to a lower percentage payout in the instance of finishing in-the-money to reduce losses if the trade is unsuccessful. A variety of levels of Trade Insurance coverage are available, between 5% and 20% of the full value of the trade.
Put into an example, a trader placing a ‘Put’ option of $200 may choose to insure their investment to the tune of 10%. This would therefore mean that if the trade was not successful, they would be refunded 10% of their initial stake – in this case $20, rather than losing the whole thing. By contrast, if the trade was to prove successful, they would forfeit 10% of their winnings accordingly.
For more information on OptionStarsGlobal unique features and services to members, get in touch with our dedicated support team today on +44 203 807 06 47, or drop us an email anytime at [email protected].