The builder option is a possibility offered by brokers specialized in binary options to their clients. It allows investors to customize their trading and carry out transactions that precisely meet their requirements. They can, in fact, “build” their own binary option. How does it really work? How to benefit from it? What are the advantages?
Option builder, available from most binary option brokers
The builder option literally means “build an option”. This is exactly what this feature implies, which is offered by a large majority of reference brokers such as AnyOption, 24Option or TopOption. In concrete terms, the investor has the possibility to determine the specificities of his binary option and thus delimit the risks he will take when trading. The following criteria can be set up in particular: the underlying asset (equities, currency pairs, commodities, etc.); the expiry date of the option (or expiry period); the degree of risk. It is then possible to determine the expected profit and the repayment rate for each investment. The higher the expected benefit, the less refund will be possible in the event of a loss.
It should also be noted that this is generally a Call – Put contract, i.e. the trader makes his forecasts based on the evolution of the price of the asset traded: will the final price be higher (Call) or lower (Put) at the initial price?
One of the most interesting advantages of the builder option is the ability to customize the return, taking into account the risks that the trader is willing to take. For example, on a given position, the bold trader can opt for a return of 85% in the event of a gain, but 0% return on loss if the trade loses. The more cautious trader prefers to bet on a return of “only” 60% in the event of a gain, but 25% will be returned to him if his trade loses. Risk management can be truly customized.
High trading flexibility
Thanks to the builder option, investors can benefit from tailor-made trading, in particular thanks to the expiry period which can be defined according to each individual’s strategy. The trader is not obliged to comply with pre-established deadlines that are not always compatible with the tactics adopted. For example, the investor can select the most appropriate expiration date by taking into account a future economic event (within the next few hours).
very advantageous option
With the builder option, the trader has the opportunity to refine and optimize his strategy. Not only does he choose the underlying assets that interest him, he can adapt the binary option to his preferences and objectives. It is no longer limited by the constraints imposed by brokers, either the degrees of risk or the expiration times. The chances of success are optimized.
It should nevertheless be stressed that despite the obvious advantages of the builder option, it is strongly recommended to start with the “traditional” options and master them well before building your own option.