How To Choose Your Binary Options Trading Platform

Your binary trading platform choice plays a critical part of your ultimate success as a binary options trader. While they may look the same, each binary trading platform is definitely not the same.

Speed is essential in any trading activity, especially when the difference between winning huge and losing big is a mere fraction of a penny apart. That’s why it’s important to get comfortable with the defining characteristics of your binary trading platform of choice as quickly as possible.

Binary Trading Platform Charting Capabilities

Each platform provides some sort of charting functionality so you can easily see graphically where you are placing your trades. Some charts on the various platforms are better than others. Make sure you pick a binary trading platform that has real time graphs that can easily be seen next to the trade entry area.

While this seems like a no-brainer, do not overlook this seemingly minor point. Remember how we said speed is everything, well the difference between using a binary trading platform chart and using an independent chart outside of the platform can cause you to miss a potential trade by seconds, time that could be critical in determining a winning trade and losing trade. I learned the hard way.

When I first started trading binary options I used independent charting sources to determine my entry points. After losing a few trades by 0.0002 cents (seriously!) I decided I couldn’t risk the time that it took to look back and forth and miss a solid trading opportunity.

Binary Trading Platform Order Entry

Another seemingly minor point here but do not underestimate the importance of selecting a platform that is easy to switch between purchasing a put or call. I also learned this one the hard way (see a pattern here!) A lot of times you will find yourself switching back and forth between puts and calls, especially when a stock pattern is at a critical juncture that could yield a quick breakout or strong reversal.

Make sure your binary trading platform of choice switches easily and quickly between puts and calls because if there is a significant lag you may find yourself purchasing a binary call when you meant to purchase a binary put. There is nothing worse than reading the charts correctly, placing a trade based on your reading, then realizing you selected the wrong put or call by accident.

Remember this is binary options trading, there are no re-dos, no mulligan’s, you have to live with your decisions even if they were made in error. So take some time to get comfortable with the order entry functionality of your favorite binary trading platform, it could mean the difference between an exhilarating win and a crushing defeat.

TIP : If you’re forced to use a platform for a specific software to function properly, you can always use multiple bots/platforms and trade on only one.

Advanced Binary Options Trading Stratagies

Binary options strategies come in all shapes and sizes but when you really take a closer look there are really just two overriding themes, speculation and hedging.

In the following paragraphs we explore the most common speculation and hedging strategies used in binary options trading today.

Speculative Binary Options Strategies

Speculative binary options strategies typically consists of a trader implementing some sort of technical analysis to pick high probability binary options entry points.
Candlestick charts are used pretty extensively in these types of binary options strategies as they are pretty adept at identifying short-term trends, something all binary options traders strive for

When implementing speculative binary options strategies, traders tend to wait until the last few minutes prior to the lock out period to place a trade.

Waiting until the last minute to place the binary trade minimizes the amount of time the trader needs to be correct in his/her short term directional choice.

Stocks tend to move around a bit and it is very common for trends to reverse after a few minutes, so the shorter amount of time the trade is exposed the better for speculative binary options strategies traders.

Hedging Binary Options Strategies

On the extreme opposite end of speculation lie the hedging binary options strategies.

While the speculative traders take on massive all or nothing risk in their trading activities, hedgers prefer to place a trade early in the expiration cycle, monitor the performance, and then decide on an appropriate action plan to ensure maximum gain and minimum loss.

Hedgers usually implement one of three strategies during the expiration cycle.

  1. Purchase a binary call (put) option early in the hour and, if the stock moves in the appropriate direction, purchase the opposite binary put (call) to lock in a profit zone and minimize the amount of downside risk.
  2. Purchase a binary call (put) option early in the hour and, if the stock moves in the appropriate direction, purchase another binary call (put) to essentially double the trade amount.
  3. Purchase a binary call (put) option, and if the stock moves against them, quickly purchase the opposite binary put (call). This strategy essentially locks in a loss unless the hedger is able to place another trade to create a profit zone. These binary options strategies are used extensively throughout the day by experienced binary options traders.

While the speculative binary options strategies incur more risk, the reward is significantly high enough that most traders of binary options end up using it more frequently. If you are more conservative then you should definitely consider going the hedging route.

Talk soon,

Binary Boss