It’s no secret that trading with Stern Options offers a world-class trading experience for every single one of their clients. Whilst they boast incredible customer service and brilliant educational resources, Stern’s reputation primarily comes down to its world-class trading platform.
Offering unparalleled trading opportunities and types to suit any trader regardless of preference, it’s no wonder that Stern is the ‘world’s most acclaimed trading environment’.
Different Ways to Trade
There are numerous types of Binary Option trades, some simpler than others. Each trader will have their own preferences as to how they specifically wish to trade, or some may like to trade using a variety of different methods. One of the most common types of Binary Options trading is Call vs. Put (Up or Down). As the name would suggest, this involves the trader simply predicting whether or not they think the asset price will rise above (call) or fall below (put) the price the asset was at during the time in which the bid is made.
Another relatively common type of trading is range options. These particular trades involve price ranges as opposed to specific prices, and the trader must predict whether or not they think the asset price will fall between an assigned range. They are also referred to as ‘in and out’ options and, whilst this form of trading is still relatively popular, it isn’t as common as call/put Binary Options due to a higher element of risk. However, there is potential to achieve much higher returns which adds to its appeal.
Commonly known as SPOT Options, Single Payment Option Trading involves two conditional aspects to the trade that the trader (investor) must specify. These are the exact conditions that must be met for the investor to receive a payout, and also the size of the payout they wish to receive if their specified conditions are met.
They will then present these two aspects to a broker, who will then weigh-up the likelihood of their conditions being met and establish an appropriate premium for it. The investor can then choose whether or not to accept or reject this premium – if accepted, they will then buy a percentage of it and can expect the full payout should their proposed conditions be met.
However, if the conditions aren’t met, they will lose the entire premium amount to the broker.
Pros of the Trading Platform
SPOT options have increasingly grown in popularity, particularly in Europe, for a variety of reasons. Firstly, traders have a lot more control and flexibility as they are the ones that specify the exact conditions of the trade. This gives the opportunity to create differing scenarios dependent on how you personally predict the market is going to sway, allowing you to tailor your trading experience to fit your exact predictions. In addition, there is little risk of loss with this kind of trade as, should the conditions specified not be met, all you will be losing is the percentage of the premium paid.
Cons of the Trading Platform
Whilst SPOT options have their distinct advantages, as with any method of trading there are some disadvantages too that are certainly worth taking into consideration if you’re thinking of involving yourself in SPOT options. Whilst you get to specify the conditions of the trade, it is ultimately up to the broker to establish the premium you will pay – you only have the option to accept or reject the offer that is presented to you by the broker. In addition, once a SPOT option has been purchased, you’re unable to change your mind and sell the option; you’re essentially stuck with it even if conditions change and highly suggest that your specified conditions won’t be met.
Within the world of trading in Binary Options, there are many different types that all come with their own advantages and disadvantages you should consider before making an investment. Regardless of whether you consider yourself to be a highly experienced trader or a newcomer, taking a look at the intricate details of the trading platform you’re planning to use, and what it has to offer you, is the best way to be as prepared as possible for what potentially lies ahead when you begin trading!
If you’d like more information on making a deposit or withdrawal from Stern, check out our Deposit/Withdrawals page.