What is Binary Options Software?
Binary options software is simply software that helps you execute binary trades. Similarly to other strategies such as day trading, binary option software can be broken down into three main categories: data, charting. and trade execution. If you are a smart investor, and due your due diligence – which you must be if you are reading this – you will often come across articles or reviews on binary robots. This is an example of trade execution software, which will be discussed further down.
Despite the plethora of information available on automated binary trading systems, you shouldn’t let that one concept over shadow data and charts. At the end of the day all three elements of binary options software are equally important in developing a successful binary options trading strategy. (For an introduction on trading strategies check out our page on the subject – Binary Options Trading Strategies)
3 Main Categories for Binary Options Trading Software.
- Data – This is simple as it sounds. Most exchanges prefer to interact with 3rd party companies that aggregate market data and distribute it to greater investment community. When you are trading binary options, you need to know the prices of commodities, stocks, indices or currency pairs you want to trade. The way you do this is by utilizing software that displays all the data you need when you need it. Binary signal software is a tool worth integrating into your binary options strategy.
An individual investor does have access to a limited of data, however, this is not alway real time and doesn’t provide easy access to historical information – important analyzing trends over time. Its also important to keep in mind that many free data providers don’t provide real time data – rendering the information practically useless to binary option traders. NASDAQ, the second largest exchange in the world (NYSE is the largest), has a portal on its website listing approved vendors for its data as well as detailing the benefits of 3rd party data vendors.
Luckily for binary options traders, most binary options platforms provide accurate real time data to account holders through an approved market vendor such as Thomson Reuters. (See Figure 1)
- Charts – In the world of trading data and charts go hand in hand. To such an extent, in fact, that most data providers will display data in a chart so the invest can easily make sense of the enormous of amount of information.
The above image shows you the interface trading interface on iq option. As you can see by signing up for an account on iq option, you receive access to 2 of 3 types of binary options trading software: data and charting.
As you must know by now, it is not enough to an enticing image. Shop around and see which platform provides you with the opportunity to implement your investment strategy. It is also a good idea to open a demo account before you begin committing considerable sums of money to any one platform. This give you an opportunity to familiarize yourself with specific binary trading software each platform utilizes.
- Trade Execution – You have all the data, and you’ve charted historical trends, now what do you do? You execute the trade. After all that’s what we are all here for: to earn extra cash trading binary options!
You can execute the a binary options trade on any binary options platform. Many platforms offer an array of trades from a simple CALL/PUT option to a more complicated, but more rewarding, one touch option. Or, you can employ a binary options trading robot to automatically execute trades. Binary robots are binary options software which focus solely on executing trades. There are many different brands of binary robots. Almost all of them allow you to configure the types of trades you want to execute down to the level of risk, underlying asset, value per trade etc. This can be a winning binary options system if used properly.
Which binary trading software should I use?
The short answer is all of them! Without integrating data, charts, and trade execution software into your overall trading strategy the road ahead will be full of pitfalls. Each part plays a role in allowing you to make the right decision at the right time. But, as we all learned in Econ 101, we have unlimited wants and needs but limited resources. With that in mind, how does one choose the best software to maximize return on investments.
The first thing you need to is to develop your investment strategy. Are you looking to make some extra cash? Do you live for the risk and rewards? This will guide you towards the right software for you. For example, if you love analyzing data to the smallest detail, you should make sure your data software provides you all the information you want. If you enjoy putting your feet up and making trades with the game on in the foreground, perhaps you should look into an automatic trading software. The United States Security Exchange Commission (SEC) provides a step by step guide for planning your investment strategy, which in turn will inform the software that is most important to you.
At the end of the day, you need to find a binary options platform that works for you. The best way to do that is to try the different binary options brokers out there.