Binary Options Traders Tools for All
binary options (Photo credit: opportplanet)
If you visit a binary options trading platform, you will observe that apart from the trading information and the basic options of assets, there are certain tools present there. Further observation will show that these do not play a direct role in the trading process. These tools are called Binary Options traders tools.
Purpose of Tools
There are numerous types of tools available, some are found at almost every platform while others are signature tools of a few platforms; but the basic purpose of all these is the same that is to help the trader decide how to trade. The tools are designed to provide opportunities of fundamental and technical analysis so that they can understand the market, and know when to enter and exit the trade as well as what the price and other factors should be.
Basic Tools
There are two types of tools, the first type is basic tools. These are the tools that are used by almost every type of trader may they be professionals or people trading for the first time these are made to help the trader in fundamental and technical analysis of an asset and judge its future performance. All of these tools are found on the platform, although there are certain independent service providers as well that might offer these tools. The basic tools are always used before the trade begins. Mentioned below are the most common and useful tools:
- Charts- these are graphs about the asset you choose. These are mostly based on time- price axis. With this you get to know how the price of the asset performed at a specific period in the past. This is also great to identify trends in the price of the selected commodity.
- Signals- the signals are messages sent to the trader, which informs him about trading details as well as a complete analysis regarding it. In this, the analysis is done by some professional human, or is computer generated.
- Indicators- these are special tools that are used in combination with charts. These indicate how why the price shifted, and what was the overall performance of the asset in at a time period. This is a tool used for technical analysis.
- Economic calendars- this show all the major events and occurrences regarding an asset. This reminds you, as well as allows you to note all the economic changes that occurred or will occur.
- Market news- some platforms also provide current news about what is currently happening in the world for technical and mainly fundamental analysis.
Advanced Tools
The other category is of advanced tools, these are relatively new, and hence are lesser in number. New advanced tools are being developed with each passing day, but the primary difference between these tools and basic ones is that advanced tools can be used at any time before the trade ends. The two most common tools are explained below:
- Rollover: This tool is used when you have begun the trade and it is about to end. At that time, if you think that the option is not in your favour; you can enter the next expiry time with the same trade.
- Double up: This tools allows you to start a new trade if your current trade is successful, and you think that the trend of the price will prevail in favour of the new position.
Category: Investing
