Trading and investments are extremely tough to navigate if you don’t know the basics. Among the most important things to learn up about when you are trading are trading orders.
What is it?
When a broker is trading, a trading order gives a trader and instruction to either take or leave a position. While the easiest method to trade is to click on buy when a particular option meets a trader’s requirement and to sell when the trader feels like the option has outlived its utility, it isn’t the most efficient method to do it.
A simple buy-sell-trade based on convenience could lead to losses. Not only that, this method of trading is highly time-consuming. Add to it the additional losses a trader can incur from slippages, and overall the very simplistic buy-sell trading method is not profitable.
Types of orders
Protective stop loss orders – this kind of order creates a limit within which a trader can risk money in a particular asset. The boundary beyond which the trader cannot trade prevents any further loss for the trader in case their asset is losing value on a trading day. The price level that governs this type of order is pre-determined. In fast-moving markets and other markets, this type of order is placed the instant a trader begins trading
Market order – this is the most basic type of order. This order carries the instruction for a broker to buy or sell when the price is right/available. This kind of order is executed immediately. The good thing about this kind of order is that a trade is guaranteed to get filled by a trader when this kind of order is given.
Limit order – this kind of order carries the instruction to buy or sell at a given price or a better price. A buy limit order can be executed when the price lesser than or equal to the given price band. A sell limit order is executed when the price is greater than or equal to the given price band. This order will be fulfilled only if an asset reaches the price band specified.
Stop orders – this order activates only when a particular price band has been reached. A buy stop order is placed above market and a sell stop order is placed below market. When the level for the stop order has been reached then this gets converted into a market order or a limit order.
Conditional orders – these are advanced types of orders. They are either submitted or canceled depending on the criteria at play. Conditional orders have to be created and placed before trade begins. This is the most grassroots type of trade automation. In a one-cancels-the-other type multiple trades are placed and if one trade fulfills its criteria all others get canceled. An order-sends-order type sends orders to the market once a certain criterion is fulfilled.
Trades are basically carried out based on elaborate instructions and manipulations of numbers. It is imperative that traders be aware of what goes on before jumping into this. In fact, once traders are comfortable with his kind of activity, they can automate their market participation by using trading platforms like Millionaire Blueprint for their profits.
There are several different types of binary options; each Broker has its own offer, that varies from broker to broker. This means that some Brokers will offer you some types of binary options, while others do not. For this reason, knowing all the types of Binary Options is very important, so that you will be able to decide at which broker you want to register. We will analyse the various types of binary options available; in this article we are going to analyse the Centument Binary Options. Centument is pretty new concept and a lot of people praise it for its trading system that is aimed to help beginners in their first steps in Binary Options trading.
This type of Binary Option is one of the newest, but is identical to the High/Low Binary Option. With the Centument Binary Option, as the High/Low Binary Option you have to make a prediction on the movement of the prices; firstly you have to choose an asset (Stocks, Commodities, Indices, Forex), then you have to predict if the Price of the chosen asset will be higher or lower than the current Price after the Expiry Time (Expiry Time that in this case is very short: just 60 Seconds). If you think that the Price will be higher, you have to choose the Call Binary Option (Also called Up) whereas if you think that the Price will be lower, you have to choose the Put Binary Option (Also called Down).
After the Expiry Time, you will know if the Price is higher or lower and so you will know if your prediction was correct or wrong; in case that your prediction was correct, you will earn the payout (That is already fixed and that you know from the beginning) whereas if your prediction was wrong, you will lose the money invested (Or a part of them).
Example – Google Trading
Here an example: Let’s say that the actual price of a share of Google is $95; for us, the price will rise and for this reason we buy the Call Binary Option for this asset and the Expiry Time is of 60 seconds. If after the Expiry Time, the price will be higher than $95, for example the Price will be $95,19 or just $95,01, our prediction is correct and we will earn the Payout. Whereas, if the Price will be lower of $95, for example $94,88 or just $94,99, our prediction is wrong and we will lose the money invested (Or a part of them).
Normally the value of the Price of an asset, is considered up to the fifth or fourth decimal: for example if the Price is $95,1290, also the smallest variation of the Prices (For example: $95,1291 or $95,1289) can lead our Binary Option In the Money (Paying) or Out of the Money (Not paying, so we will lose the money invested or a part of them).
For those who are looking for trading platforms in binary option trading, they might have heard about Qbits Megaprofit. Banc de Binary is one of the oldest binary options brokers in the internet today. The brokerage is the one and only firm, that is licensed under an Australian Financial service number. There are many features that traders get to enjoy with the brokerage; however, what we like best is its capability to provide two different views of the market providing traders with the ability to analyze the market in an in-depth manner.
For those who are still new to the binary trading business, the brokerage provides a glossary of terms that would help one catch up on their learning. For those who are interested in learning more about Banc de Binary, we have made a short review of the brokerage below that might come useful. This applies to those who are looking for a brokerage to handle their trading transactions as well.
The platform is one of a kind with its different assets and stocks to choose from. Traders can pick their trade preference. The option contracts are easy to understand and in fact, one can easily find the one that suits their preferences. The platform is composed of 2 interfaces which help traders to find the asset that they want and at the same suit their comfort level.
The platform is composed of list and box views so traders can choose which view type they are more comfortable with. This is not so with other platforms giving a new meaning to the term user-friendly. For traders who are still new to the platform, they can opt to use the assistance option, which can help them navigate the platform easily.
With regards to bonuses and other promotional features, Banc de Binary provides bonuses to its trade members. In fact, the bonus can reach as high as 30% and is higher than most bonuses offered today in the binary option market today.
Loyalty offers are also available and are given to traders who do their trading transactions exclusively with Banc de Binary. First time account holders would also get bonuses from the time they first sign up and get to enjoy others as well.
To start out, the trader should make a deposit in their account a minimum of $250. For this amount, one can earn as much as 85%, which is quite impressive, and the rule of being able to get 10% of the actual loss is one of the features that traders like the most with the platform.
There are different options that are available from the platform that traders can use. These options vary as well as its earning potentials and just about, anybody can enjoy and trade using the different options.Banc de Binary provides free training for new traders or account members depending on the level of deposit that traders make. The free charge disposal is also another attractive feature of the platform.
The software used by Banc de Binary is one of the best in the industry today providing seamless interface and friendly features. For those who are looking for a platform, do try Banc de Binary.