Option Builder allows you to customize your own option. With this type of option you can choose the asset, investment amount, expiry time, and most importantly your risk/profit ratio, when you are making your trade on the market.
Option builder is ideal for more experienced traders who are looking for flexibility when trading, and who have developed their own strategy, which they want to execute on the market. No all brokers offer “option builder”, so you must research in advance which brokers offer it and what are the features of their trading platforms and what are their conditions.
How to trade Option Builder?
- 1. Select the asset you wish to trade
- 2. Select when the option will expire
- 3. Select the percentage of profit (if the option is “In the Money) and of the insurance (if the options is “Out of the Money”)
- 4. Determine if the price of the asset will increase (click on Call/High) or if the price will decrease (click on Put/Low)
- 5. Enter the amount you want to invest and place your trade
With Option Builder you can decide what is the profit percentage and what is the insurance percentage. For example, you can select 50% profit and 35% insurance, so with an investment of $500, if your trade is a winning one you’ll get $750 payout, or if your trade is at a loss, you will get back $175.