Binary options trading was created as a new way to trade options on all types of assets without having to risk large amounts of capital or be a professional trader. This has helped bring options trading into the mainstream over the last few years but there is a downside.
Many of the tools available to forex or stock traders are not available on binary platforms and this limits binary traders’ ability to profit from changes in the market. One of the biggest disadvantages is the lack of limit orders on trades. As of today limit orders are no available on binary options. This is a HUGE game changer!
Limit Order Definition
A limit order is a request with a broker to execute a trade at a specified target price or better.
The first broker to offer this is MarketsKing and we recommend you jump on this ASAP. Open up a free account and have a look at this system. We predict that this will snowball in the market and ultimately change all online options trading.
Why You Should Care
With the introduction of limit orders you can set a target strike price e.g. when Apple’s shares reach $105 and the trade will only execute at that price. This means you can set your trade and leave the computer. If the conditions are met the trade will execute. This removes one of the major barriers to profiting with binary options brokers, since most binary traders are not in front of their screen watching stocks or currencies the whole day.
A great way to take advantage of a limit order is to use it in conjunction with a solid signals provider that sends out regular target strike prices. You can these enter these into your trading platform and let the limit orders do the work!