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Oneofthemostimportantadvancesin nancialmarketsisthedevelopmentofbinaryoptions.Theybelongtotheclassknownas“exoticop-
tions”butinreality,theyareprettysimple.Theyhaveanexpirationdate,astrikepriceandtradershavetodeterminewhethertheoptionwill
expireatahigherpricethanitscurrentlevel,oratalowerlevel.
Forexbinaryoptionsareusedtotakeaview andhaveapositionwithintheforeignexchangemarket.Forexample,willtheGBP/USD
exchangeratetradeaboveorbelowthestrikepriceattheexpirationofaspecictimeframe?
IfIfyouexpectthesterlingtoincreaseinvalueagainstthedollaryouwouldbuysterlingor,ifusingbinaryoptions,you'dmakeacalloption.
Viceversa,ifyouperceivethatthevalueofsterlingisgoingtofallthenyouwouldmakeanappropriateputoption.Theforeignexchange
marketisaveryliquidmarketandintimesofuncertaintyitcanseehighvolumesofvolatility.Oneofthemajorbenetsofusingforexbinary
optionsisthatyoulimityourexposureandrisktovolatilitysincetheriskispredeterminedandmagnitudeisnottakenintoconsideration.It’s
forforthisreasonthatportfoliomanagersandtradersalikeoftenviewforexbinaryoptionsastheidealhedginginstrument.Itisimportanttoknow
thatmanycurrencypairshavevaryingvolatilityandliquiditylevels,sincetherearepairsthathavedifferentriskproles.TheG20currencies
arecomprisedofthemoredevelopedcountries’currenciesandareoftenlessvolatileandmoreliquidincomparisontoemergingmarketcur-
rencies.
1
Inspottrading,tradershavetoknowtheexactpricethatthecurrencypairwilltakeinordertogainfromtheinvestment.Ontheotherhand,
binaryforexoptionsonlyrequirethetradertopredictthedirectionthatthepriceofthecurrencypairwilltake.Inspottrading,traderswillhave
totakeadvantageofthe uctuationsofthemarketpriceandsowillmakeuseof5or30-minutechartsandshorttermtechnicalanalysis.On
theotherhand,binaryforexoptionstradersneedtoknowthefundamentals,macrodata,currencyratesandthepatternstheyareforming.
DueDuetotheonsetofstrictregulationinmanyregionalFXmarkets,Binarieshavebecomeanincreasinglypopularinvestmentvehicle,asone
caneasilyopenanoptionstradingaccountinnearlyanycountryintheworld.
Becausebinaryforexoptionsonlyrequiretraderstodeterminethedirectionthatthepricewilltakeforacertainperiodoftime,itislessrisky
thanspotforextrading.Ifyoupredictthecorrectdirectionthatthepriceofthecurrencypairisgoingtotake,thenyoucanearna xedamount
ofincomeforeverycontract.Thedownsidetothisisthattraderscannotearnmore,butthebiggeradvantageisthattheyloseonlywhatthey
paidforthecontract.Ontheotherhand,spottradershavetoincreasetheirriskiftheywanttoearnmore,andformanynewforextraders,
theytheycanactuallylosealltheirearningsthisway.Hence,thebiggestadvantageofbinaryforexoptionsisthatithaslessriskand xed,pre-
determinedpayout.
Anotheradvantageinbinaryforexoptionsisthatyoudon’tneedtodealwithbrokers.Therearenorequotesandyoudon’thavetoworry
aboutgettingstoppedoutwhiletrading.Also,sincethepayoutismuchhigherthanwhatyourisk,binaryforexoptionscanbehedgedwith
anotherforexinvestment.
Binaryforexoptionsareworthexploringforleggingintoaposition.Thismeansthatinsteadofputtingonamarketordergoinglongorshort,
thetraderputsonanintra-hourbinaryoption.Ifitishit,thisbecomesasignalthatthemarketisstrongenoughtoenteraspotpositionin
thesamedirection.Ineffect,thebinaryoptionbecomesamomentumsignal.Binaryoptionsprovideyetanotherbenettonewforextraders,
allowingthem tochoosedirectionandenterpositionsinalow-costenvironment.So,binaryoptionsmakeuseofxedcontractlengths.
UnlikeUnlikestraightforextrading,whichgenerallyusesstopsandlimitordersinordertomanagewhenapositionisexited,thebinaryoptiontrader
knowsfromtheonsetwhentheircontractisgoingtoexpire,andwhentheywillhaveexitedtheirpositionfully.
Inanycase,newtraderscantesttheirskillswithbinaryoptionsbeforeriskingseriousmoney–afactwhichoftenaccountsfortherelatively
highlead-to-depositconversionlevelsinthebinaryindustry.
2
AtraderwhothinksthattheEUR/USDstrikepricewillcloseatorabove1.2500at3:00p.m.canbuyacalloptiononthatoutcome.Atrader
whothinksthattheEUR/USDstrikepricewillcloseatorbelow1.2500at3:00p.m.canbuyaputoptionorsellthecontract.
At2:00p.m.theEUR/USDspotpriceis1.2490.Thetraderbelievesthiswillincrease,sohebuys10calloptionsforEUR/USDatorabove
1.2500at3:00p.m.atacostof$40each.
TheTheriskinvolvedinthistradeisknown.Thetrader’sgrossprot/lossfollowsthe‘allornothing’principle.Hecanloseallthemoneyhe
invested,whichinthiscaseis$40x10=$400,ormakeagrossprotof$100x10=$1000.IftheEUR/USDstrikepricewillcloseator
above1.2500at3:00p.m.thetrader'snetprotwillbethepayoffatexpiryminusthecostoftheoption:$1000-$400=$600.
TheThetradercanalsochoosetoliquidate(buyorselltoclose)hispositionpriortoexpiration,atwhichpointtheoptionvalueisnotguaranteed
tobe$100.Thelargerthegapbetweenthespotpriceandthestrikeprice,thevalueoftheoptiondecreases,astheoptionislesslikelyto
expireinthemoney.
Inthisexample,at3:00p.m.thespothasrisento1.2505.Theoptionhasexpiredinthemoneyandthegrosspayoffis$1000.Thetrader's
netprotis$600.
3
Thespread-strategyisalsoknownas‘hedging’theoption.Inbinaryoptions,ifyourtradeendsinthemoneywhetheritisacalloraput,you
getapayoutthatcanbeupto81%morethanyourinvestedcapitalwhichmeans$162foraninvestmentof$100.Butontheotherside,if
yourtradeendsoutofthemoney,youcanloseallyourinvestedcapital.Butbyhedgingtheoption,youcanminimizeyourlossby
least19%.
The“DDSS”-Strategy
TheThesimplemeaningof‘DDSS”-strategyis‘don’tdosomethingstupid’.Thisstrategyworkswhenthemarketisgoingsideways.Sometimes,
thepriceofanassetgoesupforsometimeandanothermomentitshowsadowntrendandaftersometimeagainitstartsgoingup.This
situationinthemarketisknownas‘sideways’.Insuchsituations,oneshouldnottrytotradethinkingthattheywillbestableaftersometime
becausewhenthemarketgoessideways,itbecomeshardfortheinvestortopredict.Itisadvisabletolookforanotherassetwhichisshow-
inganupordowntrend.Soitisbettertohaveathoroughlookatthecharts,doyourresearchproperlyandtheninvest.
RiskManagement
Riskmanagementispartoftradingthatonemuststickto.Inbinaryoptionstrading,theriskislimitedtoyourinvestmentonlyandyouknow
itatthetimeofthecontract.Butwhensomeofyourtradeexpiresoutofthemoney,itisawasteoftimeandmoney-tostayinthemarket.
Youshouldnotletgamblingandpoorjudgmentovertakeyou.Oneshouldnotbecomeemotionalatthesetimesandpackhisbag,takea
breakandleavethethingsthereonly.Itistimetoanalyzewhythetradeswentoutofthemoney.Whenyouarereadywithyourresearchand
strategies,youcanstartagain.
Whilstthereareafewdifferentplatformsouttherewhichsupportcurrencyoptionstrading,themostimportantthingtorememberisthat
havingastable,reliableandtechnologicallyadvancedtradingplatformcanmakearealdifferenceinyourtradingexperience.
Manytradersoverlookthisessentialaspectoftrading.Theimportanceofapowerfulplatform.
OneOneBinaryOptionplatformproviderthatstandsoutheadandshouldersabovetherestisTradologic,whoisknownastheworld’sleading
platformproviderandisbehindsomeoftoday’smostpopulartradingwebsites,suchasOptionBitandOptionXP.Thesesites,aswellasall
otherTradoLogicplatformsaredesignedaroundTradoLogic’sproprietarytradingengineandoptionpricingmodules,andprovideaunique
setoffeaturesandtoolsforoptionstraders.
InthesectionbelowwehaveprovidedareviewofOptionXPwhichhighlightssomeofthestrongerpointsoftheTradoLogicsolution.
Tradologicweknowprovidestopqualitybinaryoptionsplatforms.Butwhichouttprovidesthisplatform?Well,thereareafew,butanall-
roundfavouriteisOptionXP.
Acompletelyweb-basedplatform,OptionXPdoesnotrequireanydownloadorinstallation.Usersallaroundtheworldpossessingacom-
puterandaninternetconnectioncanstayconnectedtothe nancialmarkets,viaOptionXP.
Unlikeotherplatformsthathaveblinkingadsandpoppingbuttons,luringtradersto‘call’or‘put’,OptionXPoffersacalmandcomposedweb-
site,whichisintuitiveandeasytonavigate.Thelayoutofthesiteisremarkablycleanandprofessional-looking,andallofthetradingfeatures
areclearlydetailedinadedicated“Tutorial”section.
Thenewwebsite,besidessupportingseveraluniquetradingtoolssuchas'Close'and'Extend'onopenpositions,alsoallowsuserstotrade
in‘Boundary’or‘Range’options,inadditiontothemoretraditional‘Digital’and‘Touch’optionformats.‘Boundary’isatypeofbinaryoption
whereoneattemptstopredictwhetheraparticularassetwillexpirewithinapredeterminedpricerange,andisbasedontunneltrading-a
popularstrategyamongstspotFXandcommoditiestraders.
OptionOptiontypes:thestrengthofOptionXPascomparedtoothersimilarplatformsisthebroadrangeofoptiontypesthattheplatformpresents.
Unlikeotherplatformsthatofferplain,or“vanilla”above/belowoptionsfortrading,OptionXPoffersthesimpleabove/belowoptionaswell
astouchtradingandrangetradingoptions,thusprovidingthetraderswithavarietyofnancialtoolsattheirdisposition.
AdvancedAdvancedfeatures:inadditiontothevarietyofoptiontypes,thesiteoffersseveralpatentedtradingfeatures,enablinguserstoaccurately
managetherisk/rewardratioonindividualpositions.TheseadvancedtoolsallowBinaryOptionplayerstoenjoylevelsofcontrolandrisk
managementwhicharecomparabletothosefoundinprofessionalFXandequitiestrading.
TakeProt-Enablestradersthatare‘inthemoney’tostopanoptionbeforeitexpiresandrealizetheirprots.
StopLoss:Enablestradersthatare‘outofthemoney’tostopanoptionbeforeitexpiresandcurbtheirlosses.
Extend(RollOver):Enablestraderstoextendtheexpirationtimeofaparticularoption.
Double:Double:Enablestraderstoincreasetheirinvestmentonanopenoptionwhichlookspoisedtomakeaprot,allowingthem toreceivea
doublepayoutonexpiry,iftheinitialpredictionwascorrect.
Payoutpercentage:thepayoutpercentagebyOptionXPisprobablythehighestamongbrokersasitoffersawhopping81%returnsforasuc-
cessfultrade.
4
Tradologicweknowprovidestopqualitybinaryoptionsplatforms.Butwhichouttprovidesthisplatform?Well,thereareafew,butanall-
roundfavouriteisOptionXP.
Acompletelyweb-basedplatform,OptionXPdoesnotrequireanydownloadorinstallation.Usersallaroundtheworldpossessingacom-
puterandaninternetconnectioncanstayconnectedtothe nancialmarkets,viaOptionXP.
Unlikeotherplatformsthathaveblinkingadsandpoppingbuttons,luringtradersto‘call’or‘put’,OptionXPoffersacalmandcomposedweb-
site,whichisintuitiveandeasytonavigate.Thelayoutofthesiteisremarkablycleanandprofessional-looking,andallofthetradingfeatures
areclearlydetailedinadedicated“Tutorial”section.
Thenewwebsite,besidessupportingseveraluniquetradingtoolssuchas'Close'and'Extend'onopenpositions,alsoallowsuserstotrade
in‘Boundary’or‘Range’options,inadditiontothemoretraditional‘Digital’and‘Touch’optionformats.‘Boundary’isatypeofbinaryoption
whereoneattemptstopredictwhetheraparticularassetwillexpirewithinapredeterminedpricerange,andisbasedontunneltrading-a
popularstrategyamongstspotFXandcommoditiestraders.
Optiontypes:thestrengthofOptionXPascomparedtoothersimilarplatformsisthebroadrange
ofoptiontypesthattheplatform presents.Unlikeotherplatformsthatofferplain,or“vanilla”
above/belowoptionsfortrading,OptionXPoffersthesimpleabove/belowoptionaswellastouch
tradingandrangetradingoptions,thusprovidingthetraderswithavarietyofnancialtoolsattheir
disposition.
AdvancedAdvancedfeatures:inadditiontothevarietyofoptiontypes,thesiteoffersseveralpatentedtrad-
ingfeatures,enablinguserstoaccuratelymanagetherisk/rewardratioonindividualpositions.
TheseadvancedtoolsallowBinaryOptionplayerstoenjoylevelsofcontrolandriskmanagement
whicharecomparabletothosefoundinprofessionalFXandequitiestrading.
TakeProt-Enablestradersthatare‘inthemoney’tostopanoptionbeforeitexpiresandrealize
theirprots.
StopLoss:Enablestradersthatare‘outofthemoney’tostopanoptionbeforeitexpiresandcurb
theirlosses.
Extend(RollOver):Enablestraderstoextendtheexpirationtimeofaparticularoption.
Double:Enablestraderstoincreasetheirinvestmentonanopenoptionwhichlookspoisedto
makeaprot,allowingthemtoreceiveadoublepayoutonexpiry,iftheinitialpredictionwascor-
rect.
PayoutPayoutpercentage:thepayoutpercentagebyOptionXPisprobablythehighestamongbrokers
asitoffersawhopping81%returnsforasuccessfultrade.
4
Intoday’sonlinetradingindustry,establishedFXbrokeragesareconstantlylookingatwaystoincreasevolumesbytargetingnewmarketseg-
mentsandaddingavarietyofproducts.OfferingBinaryOptionstradingisonewaytolaunchabrandnewtradingproduct,whichappeals
toamuchbroaderaudiencethanFXtrading.Onesuchmarketisi-Gaming,amulti-billiondollarindustrywhichhasbeenadverselyaffected
overrecentyearsbytougherregulation.WithonlinecasinosshuttingdowninFrance,theUSandmanyothercountries,therelativesimplicity
ofOptionstradingisdrawinginlargevolumesofexittrafcwhichiseasilyconvertedbytoday’sBinaryoperators.Companieswhichposses
existingexistingmarketingchannelsandcallcenteroperationscanveryquicklyabsorbBinaryOptionsandaddthemtotheirarsenal,bysettingup
anonlineplatformandallocatingamarketingbudgettothenewproduct.
We’veseenhowtheBinaryOptionsareanidealchoiceforonlinetraders,andwhymanyFXbrokeragesarenowlookingtoaddBinariesto
theirproductline.Butasapotentialoperator,oneisfacedwithanumberofpotentialsolutionproviders-WhychooseTradoLogic?
FirstFirstandforemostisthespeedofdeployment.TradoLogic’sturnaroundforplatformdeploymentisunder2weeksandoperatorsareprovided
withallthenecessarytoolsrequiredtomanagetheirbrokerage,suchasaCRMandanafliatemanagement/onlinemarketingsystem.Pro-
prietarytradingtoolssuchastheTakeProt,StopLossandExtendfunctionsareuniquetoTradoLogicandallowtoaddtobottom-linerev-
enuesthroughanincreasedinclientwalletshare.
TheTradoLogicPlatformManagementSystemprovidessiteoperatorswiththetoolstoexpandtheirmarketshare,increaseclientprotability,
andenhancetheoveralltradingexperiencefortheirendusers.
AnotherAnotheroneofTradologic’simpressivefeaturesisthatthesolutionleavesoperatorsvirtuallyhands-free:withriskmanagement,compliance,
and nancialservicesandtechnologycovered,operatorsonlyneedtofocusonmarketingandpromotingtheirbrand,aswellasproviding
salesandclientservicestotheendtraders.
Herearesomeofthecompany’sstrongerpointsinmoredetail:
CRM -TradoLogicoffersacutting-edge,innovativeBackOfcesystem,allowingoperatorstokeeptabson-allaspectsoftheir
Binarybusinesses.TradoLogic’sCRMsystemcomescompletewithadvancedreportingtools,custom-builtreports,andfullintegra-
tionwithbothpaymentprocessorsandmarketingcampaigns.TradoLogic'sweb-basedCRM alsofeaturesthelatestindata-
securitytechnologysuchasSSLencryptionandanti-theftmechanisms,whichtheycarrytoensurethatanysensitiveinformation
willremainintherighthands.
1
5
BelowisanexcerptofaninterviewArielWolfe,TradoLogic’sDirectorofBusinessDevelopmentgavetoaprominentnancialpublication.
Here’swhathehadtosay.
Congratulationsonthenewadditionofthebinaryoptionsbrand,OptionXP.Canyoutellusalittlebitabouttheservicesyoupro-
videforawhitelabelbrandlikethis?
OptionXPreceivesaturn-keysolutioncoveringallaspectsoftheoperation,allowingthemtomaintaintheirprimaryfocusononlinemarketing
andgeneratingleads.Servicessuchasriskmanagement,serverhostingandoptionpricesareallhandledin-house.Wealsoprovidelicens-
eessuchasOptionXPwithbusinessconsultingandbespoke nancialservices.
Tradologicisconsideredtheleadingbinaryoptionproviderintheindustrytoday.Whathaveyourecognizedasimportantkeyfac-
torsforsuccessfuloutcomesthatputyouaboveyourcompetitors?
TradologicisoneofjustahandfulofcompaniesthatprovideaFULLturn-keysolutiontoclients,providingthemwithserviceslikefraudpre-
vention,riskmanagement,businessanalysisandprofessionalcallcentreoutsourcing.Inadditiontothiswealsoofferabroadrangeof
uniquetradingtoolsandoptiontypeswhicharepatent-pendingandcannotbefoundelsewhere.
Oneoftheadvantagesoftradingwithbinaryoptionsisthattherearenoregulationsinplaceandanyonewithaccesstotheinternet
cantakepart.Doyouthinkthisissomethingthatislikelytochangeovertime,anddoyouthinkthatifitdid-itwillaffecttherising
successofthebinaryoptionsphenomenon?
AtAtthepresenttimewedon’tanticipatethemarkettomovetowardsregulation,sinceBinaryOptionstradingoccupiesthe“greyzone”be-
tween nanceandgaming.Thissaid,Tradologicisfullypreparedfortheonsetoffutureregulation,andend-userscannotopentrading
accountswithoutsubmittingfulldocumentation.TradologicalsopracticesKYCandAMLproceduresinternallyaswellascapitalsegregation.
Tradologichasdemonstrateditscapabilitytore-designandre-calibratewebsitestowardsspecictargetaudienceswhichisdem-
onstratedwiththepartnershipwithKoreanoperatorKingOption.com.Howdidyouovercomethevariouschallengesinachieving
thismerging?
TheAsianmarketpresentsauniquesetofchallengesforonlinebrokers;thereforewehaveplacedthehighestpriorityonadaptingourprod-
uctstoregionalpreferences.ThiswasenabledbyjoiningforceswithalreadyestablishedAsianoperatorsintheregion,suchasKingOption,
whowereabletoprovideuswiththecountry-specicinformationneededinorderforustolocalize.
ItdenitelyseemsthatTradologicarefullyrecognizingthegrowththatliesinternationally,withtheintegrationofEnvoyServices’
paymentsolution.Couldyoutellmealittlemoreabouttheimprovementsthatthiswillprovide?
Withover200dedicatedbankaccountsandpaymentservicesworldwide,Envoyallowsouroperatorstotargetvirtuallyanyglobalmarket
andprovidestheend-userswithadomesticbanktransfersolutiontofundtheirtradingaccounts,openingupthebenetsthatcomewitha
worldwidepaymentplatform.ThisisparticularlycriticalinsuchkeymarketssuchasJapan,wheretradersandinvestorsgenerallyrefrainfrom
creditcardusage.
CONTACTTRADOLOGIC
FormoreinformationaboutTradoLogic’sBinaryOptionPlatform
ManagementSystem,visithttp://www.tradologic.com
Orsendyoursalesinquiryto:info@tradologic.com
Telephone:+35722030390
AfliateSoftware–Yournetworkisyournet-worth.ThisissomethingthatTradologicreallyunderstands,-makingmanaginga
clients’networkofafliateseasyandstraightforward.Tradologicprovidesoperatorswithastand-alone,web-basedAfliateman-
agementportal,fullyintegratedwithboththeCRMandonlinecampaigns.SimilarlytoitsCRMstructure,thissystemfeaturesoptimi-
zationreports,marketingmetrics,andawidearrayofotheradvancedtools.
VarietyofProducts–Aswellasofferingthethreestandard('vanilla')options,High/Low,TouchandRange,TradoLogicprovidesop-
eratorswith2additionaltradinggameswhichareuniqueto them:'Matrix'and'AutoTrade'.
VarietyofFeaturesandTradingTools-TradoLogichasdevelopedabroadspectrum ofpatented,innovativetoolsandfeatures
whichpermittraderstomanagetheirrisk/rewardratioonoptions.ItsTradingToolssuchas'StopLoss','TakeProt'and'Extend'
bringBinaryOptionscloserthaneverbeforetotheForextradingexperience.Theiruniquefeaturessuchas'Double','Split'and'Re-
verse'provideafunwayfortraderstomanagerisk,obviouslyalsogeneratingsubstantialadditionalrevenue-fortheirclients.
RiskManagement–TradoLogicprovidesahighlyprofessionalriskmanagementservicetoalloftheirpartners.Theyusebothatra-
ditional(24/5)dealingdeskandanalgorithmicPricingFormulawhichwasself-developedin-house.Thiscombinationensuresthat
Tradologic’sclientsreallyreceivethebestpossiblepricingandliquidity,whilemaintainingminimumriskexposureforoperators.
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