Binary Options Trading Tools
Experienced binary options traders know how to use binary trading tools to their advantage and increase profitability of trades. Binary trading tools can be broken down in two groups. First group includes trading tools offered by the brokers on their trading platforms, such as roll-over, early closure, trading charts, risk free trades, mobile applications and trading bonuses. Second group of binary options trading tools includes trading indicators, economic calendars and advanced trading charts offered by third party providers.
Advanced charts and trading indicators
Many binary options traders use advanced charting systems such as Metatrader or Thinkorswim, which provide for amazing flexibility of settings and indicators compatible with all trading strategies. Key indicators such as Bollinger bands, Fibonacci, Oscillators, Moving Averages and others are very popular among binary options traders who use technical analysis, and with the help of advanced charting systems they can be mastered in the short period of time. Real-time market data stream and powerful analytical tools are appreciated by novice and experienced binary traders.
Early closure or Sell feature
Binary options brokers do their best to diversify binary trading tools on their platforms and help traders improve profitability. One of these binary trading tools is called “Sell” or “Close early” feature. It allows to close a position prior to the set expiry time for the price offered by the platform, which is calculated with consideration of the current price in relation to the strike price. That trading tool is available on classic Put/Call type of binary trades and long term trades. Sell feature is usually used by traders in order to minimize loss in situations when probability that the option will close out of the money is very high.
Rollover binary trading tool
Rollover is a very useful binary trading tool which allows traders to extend the expiry time of the option for a small fee. Rollover is very popular among experienced traders who can evaluate trend development timing and make necessary correction to their open positions. In many cases this effective binary trading tool can help turn loss into profit. Rollover should be used with caution by novice traders as if the option expires out of the money at the end of that period, a trader will lose more money (initial investment plus Rollover fee).
Risk free trades
Risk free trades are offered by many binary options broker as a part of their account benefits. Sometimes risk free trades are included in brokers’ promotional offerings. In the event of loss, the invested amount is returned on a trader’s account. Profit of winning trades gets credited to the trading account without any restrictions. For example, your trading package comes with 3 risk free trades. One of your $500 positions expired out of the money, another two $500 positions expired in the money. Lost investment amount will be credited back to your trading account by the broker, profit of your winning trades will make approximately $800.
Binary options bonus