If you intend to invest funds in securities it is necessary to choose the right intermediary. Best suited to that are accounts offered by brokers located on web-based platforms. Accounts for binary options management are fairly simple to use but differ from each other. Here’s some advice on how to choose the right account for your needs.
Like bank accounts, accounts on different brokerage platforms can vary greatly between each other. Larger entities offer a binary options demo account for free, other charge for it or require that certain conditions are met. The number of available assets can be different on each platform, the same holds true for the way it’s managed. Select the account that will suit the purpose of the investment best, here are the four available types.
It can be said that with this account start all the novice market players. This is a basic account to invest and trade the current cash. As with the Bank, the trader pays a certain amount, and then spends it on an investment in resources, items, currency or indicators. Depending on your preference, you can choose one or a few.
Individual retirement account
Unlike those offered by open pension funds, here the investor has an impact on the rate of return of the contributed capital. This account is selected by the people whose aim in investing on the financial market is to develop a profit that will be spent more efficiently and saved for a future pension.
This account is similar to bank accounts with a built-in revolving credit. The investor incurs a debt to the broker in exchange for securing investment or to obtain extra cash. A deposit appears on the account which trader may not use for an investment. It’s a good way to control larger operations, however, in the case of a bad forecast increases the losses.
Investors interested in binary options market should decide on this type of account. Through this account you can directly and online begin trading binary options. The brokers made sure that these accounts matched the specific requirements set by the markets of direct financial instruments. Keep in mind that not every broker has the same amount of option markets, so you might want to take a closer look at the accounts before the final choice.
While opening the broker account please note that this is only an intermediary acting on behalf of the client. Accounts on the platform are handled by the investor. Necessarily so they should become familiar with the service and the general stock market terminology. Here’s a mini glossary of basic concepts which shows up on the broker account, useful when trading binary options.
These are the key words with which an investor starts every action on the options market. With the right commands trader sets options on the purchase or sale, and decides on their position and time. The list of basic commands-orders is not long, and without them it’s hard to talk about any success on the stock trading floor.
The market order
It’s an urgent instruction to the broker telling to buy/sell options immediately in the best possible price. This order is very useful, for example when selecting the 60 seconds binary options strategy, where you have to take actions within literally two minutes. Typically for that order the broker receives a low fee because it is one of the least demanding orders.
The limit order
It is chosen mostly when trading on call and put options. It consists of ordering the broker to buy or sell options at a specific price. The investor, according to the situation on a given market, bets whether the level of prices of assets falls or fades, and on this basis gives the order to the broker. Typically it has a higher price than the market order.
All or nothing order
This order is used for the touch/no touch and boundary options. The investor specifies a spread which assets should meet or exceed. Depending on the trader’s choice of strategy it may be a stop-limit order or a stop-loss order. This allows to optimize the risk of additional losses in case of bad forecasts.
The Investor can also give the order to the broker dependent not only on changes in the market but also on a specified time frame. Day order lasts only for one working day, if it is not executed it expires. A good ’til cancelled order makes the broker perform the scheduled action (purchase or sale of an option) until its revocation by a trader. A fill or kill order and a short selling order are the delay-free execution commands of a given operation, if conditions do not allow its fulfilment it automatically expires. For each order there is a commission charged so one should think about their move before inconveniencing a broker.