There exist multiple types of binary options: HIGH, LOW, one touch, no touch, range binary options… Most of the time, online binary options brokers will propose you standard binary options with pre-selected features: underlying, maturity, return… You might want to set your own features if you want to speculate on a specific scenario. This is the main purpose of the Option Builder that lets you create your own binary option with your preferred features. This tool will actually let you specify your preferred underlying asset, risk exposure and expiry time. The main advantage of this innovative tool is that you can build an option that perfectly fits your market scenario, your trading plan and your risk profile.
More and more binary options brokers offer this pricing tool that attracts the most active and expert traders. This is a feature only the best brokers are able to offer. It requires active risk management and complex pricing tools that are able to actively monitor short-term volatility on a large range of financial assets. The option builder can thus be seen as a selection criterion for your trading account, a broker that does not offer an Option Builder feature is likely to be less competitive than one who does if you are an advanced trader.
How does the Option Builder work?
We list below the parameters that you will need to adjust in order to build your own custom binary option with any Option Builder provided by the brokers presented on the website.
- You first need to select the underlying asset: index, forex, commodity, or equity stock. Don’t hesitate to have a look at our ranking of the best binary options brokers according to the available underlying assets in order to find the one that best fits your needs.
- Select the preferred maturity. The expiry of your contract depends on your market scenario. Don’t hesitate to have a look at our article on how to choose your binary option maturity for further information.
- Adjust your risk exposure. Most brokers let you adjust your return and refund levels. Remember that the higher the return, the lower the refund and vice-versa.
- Enter the cash amount you want to invest.
- Decide on the direction of your trade depending on the type of binary option you selected (High or Low, one touch or no touch…)
A competitive advantage from advanced traders
Although we would not recommend this Option Builder tool to beginners, we believe that this is very useful feature for advanced traders. It enables you to adjust your binary option parameter to your risk profile. If you have an aggressive trading profile, you can opt to increase your risk exposure in the quest for greater profits. Alternatively, more defensive traders can reduce their levels of risk in accordance with their money management strategies.
AnyOption, OptionTime and TopOption offer the best option builders among the industry and AnyOption’s option builder propose the widest range of underlying assets and maturities. Don’t hesitate to have a look at our detailed reviews of OptionTime and TopOption for further information on each of their Option Builder features.