Stop Limit Order for Binary Options is a Game Changer. You can now place limit orders on binary options and profit without being at your computer. Read this to find out what you need to know to trade binary option limit order and make a better profit in trading the financial market online.
What Is A Binary Option Limit Order?
A limit order in binary options is an order type that is only executed when certain conditions are met. In short: the investor wants to open a position (put or call) when the target price is met. If the target price is not met, the binary option order expires 3 minutes before the expiry time of the binary option. Keep reading to find out how this works.
The limit order in binary options trading is a game changer, like stated in the first paragraph. Why we say that? Well, in common stock or Forex trading, the limit order is my personal favorite tool.
I actually never pay the market price of a stock! Prices are volatile throughout the day. So, when I decide to take position in a stock, I always open a conditional order. The conditional order is the so-called limit order. When the asset price touches the limit set, the order is executed.
This is one tool we lacked in Binary Option trading for years. Keeping the fingers on the keyboard of the computer or the fingertips on the screen of your tablet or phone with the trading app is now.. history!
How Does The Binary Limit Order Work?
The common binary option is a three step system: pick an asset, enter an amount to invest and hit either put or call. The limit order is a 6 step system. We have to choose the right criteria for our position. Here are the steps, below is a screenshot where the steps are visible.
- Pick an asset: choose a currency pair of pick a commodity you wish to trade,
- Choose an expiry time: there are 4 expires in the next hour. Or choose 11 PM to have a chance of opening a position all day long,
- Enter an amount in $: what amount do you wish to invest? The minimum amount is $20.
- When should the order be created: Change the market rate to the amount that suits your prediction.
- Take a positon: ‘put’ when you think the price goes down, ‘call’ if you think it goes up.
- Hit ‘Apply order’ to confirm the credentials you have selected. The order is now in place and ready to be executed when the target price is met.
Binary Option Limit Order – What Are The Benefits Of Trading Them?
Binary options have been around for a while. Previously the investor in a binary option had to be at the buttons to open a position in an asset. The main benefit of the binary limit order is that you can set a price target and a direction (put or call) of the asset and you can log off of the trading platform. The platform now takes over and executes your order when the criteria are met.
Common binary options have expiry times every 15 minutes. Limit Order binary options also have an expiry every 15 minutes, but they also expire at 23:oo. This means that the investor (you?) Can create a conditional order in the morning that might take all day to find itself meeting the target price. When the limit order does not meet the price at 22:56h, the order is cancelled.
Another benefit is that you just don’t take the market price for granted. There is always a better price. You just have to wait for it and thanks to the long expiry ’till 23:00 PM, you have all day for the binary option to end up in the money.
What Assets Are Available In Trading Binary Option Limit Orders?
No binary option trading platform without a wide range of tradable assets. Are you looking for a particilar one? This is an overview of the currencies and a commodity that can be traded using the limit order in binary options.
|AUD/USD||GOLD||none yet||none yet|
We trust that the binary option brokers that support limit orders will enable indices and stocks in the near future, as well as increasing the number of commodities. Jeezz.. We can’t even trade oil binary options.. Can you image that?
The Risks of Trading Binary Option Limit Orders
Are binary option limit orders more risky than other binary options? No, you can still end up losing your initial investment. The chances of profit and loss are still 50 percent as in common binary options. The stock either goes op or down in the predefined time frame.
The only risk – compared to other binary options – is that the order may not be executed when the criteria are not met. But, maybe that is not the risk since being executed or not is just the whole point in the limit binary option.
We can conclude that there are no other risks involved compared to the common binary option.