Binary Options Builder
The Binary Options Builder is a function that allows the trader to customize certain aspects of the binary options trade. Using the binary options builder, a trader can set a risk-reward ratio he is comfortable with, choose the commencement time of the trade and set his own expiry time, and trade strategies. So with this function, the trader “builds” his own trade.
The binary options builder is an exclusive feature of classical binary trade platforms. The diagram below illustrates the aspects of the binary options trade that can be customized using a binary options builder.
Here is a Binary Options Broker that Allows You to Use the Binary Options Builder: Click Here
The parameters that can be adjusted by the trader using the binary options builder are as follows:
a) The expiry time. The binary trades that can be set using the binary options builder can only last a maximum of 24 hours. As such, traders can set the trade hour (from 00 to 23) and the trade minute expiry (from 00 to 55). These correspond to the time of the expiry and not the duration of the expiry. So if a trader chooses the expiry hour as 12 and the expiry minute as 15 above, then the expiry of the trade is NOT 12 HOURS AND FIFTEEN MINUTES, but 12:15 pm on the day the trade was placed. This can be confirmed by looking at the expiry date and time listed on the right of the trading platform screen. Take note of this to avoid errors.
b) The profit control risk. With this tool, the trader can decide how much he wants to make if the trade is in the money, and at the same time, what percentage of his capital can be returned if the trade is out of the money. The more the profit desired, the less the amount that can be returned if the trade is a failure and vice versa.
To set a trade using the binary Option Builder function, follow these steps outlined below:
a) Click on the Option Builder tab.
b) Select the asset you want to trade.
c) Choose the expiry time using the guidelines listed above.
d) Adjust the profit control risk parameters as you desire.
e) Enter the amount to be staked in the trade in the space provided.
f) Click on either CALL or PUT according to your desired trade type.
g) Click “APPLY” to execute the trade.
One of the best ways to use the Option Builder is when trading stock indices. Usually, a look at the stock index futures or the prevailing market news will clearly show what the market sentiment is. To use an example, on Monday May 28th, 2012, the Spanish government injected funds into BANKIA, one of the biggest banks in Spain to save it from imminent collapse. This was a market-negative news event as it showed that the banking system in Spain was very unstable. A trade with the binary options builder setting the expiry of a PUT trade on the IBEX (Spain’s stock market index) to 08:10 am, would ensure that the trader is positioned to benefit from the lower market open that would surely accompany this news event.