When you were choosing the binary option for trading, you have probably noticed that the key option’s features like correlation between profit and expiration time are constant and determined by a broker. In fact, you can choose only the underlying asset for a trading. You must admit that it is not the most convenient situation. For this reason, some of the most advanced binary options’ brokers have developed the new type of binary options that provides traders a possibility to control the level of risk and the options’ expiration time. This platform was called Builder or Option Builder.
Working principle of the Option Builder is fairly simple. It is based on the correlation between the earned profits in case of the positive option’s outcome and the compensation, if the outcome is negative. In other words, initially reducing the percentage of the option’s profit, you increase the compensation eventually. The converse is also true.
The major benefit of this innovative binary options’ form is in the fact that a trader can set option’s parameters independently and according to his own trading style. The aggressive traders will perhaps choose a higher profit percentage at the expense of the risk growth. Adherents of the more conservative trading methods will manage to decrease risks, according to a strategy of the capital’s management.
We strongly recommend using the binary Option Builder for the beginners in trading. It is an excellent way to get a great experience in trading with relatively small losses. We have developed a step-by-step guide for the beginners on how to work with the Option Builder on the platform of the binary options’ broker TradeRush.
Option Builder: illustrated working guide
Step 1. Platform of the Option Builder from Trade Rush looks the following way:
Step 2. As you can easily see in the picture, a trader can determine several features of the option. Let’s choose Gold as the underlying asset and specify the option’s expiring term:
Note: Pay attention that the options’ expiration time has to be from 45 to 180 minutes ahead the current time indicated on the website. Time on the website is indicated in the platform’s right corner. If you specify the incorrect period, system will show the next message:
Step 3. After setting the expiration time, you have to specify the investment’s amount and choose the correlation between profit and compensation:
Step 4. After you have chosen the option’s direction, the informational table will appear. Using this table, you can determine the forthcoming profit in case of the positive options expiration and the compensation’s amount in case of the negative trading outcome. Bring to notice that at this stage you can also work with the risk management’s system and change the correlation between profit and compensation. All data will automatically appear in the option’s informational table:
Step 5. Press Enter to buy the binary option. After this, system will ask you to confirm buying and will process the contract automatically. Gold binary option that was bought by you will appear in the window on the same page:
As you can see, the Option Builder is not that complicated. It is an excellent tool for the rational trader. Use it in trading on the platform of the binary options broker TradeRush, combine it with different strategies, and make money!