New broker houses are constantly appearing and they are also responsible for keeping this type of trading exciting and interesting for people from all over the world. One of those relatively new brokers is a company which is rapidly growing in popularity and clients are satisfied with the services it provides. The name of the company is of course CTOption and our article will hopefully serve as a CTOption review, which will help customers to see this broker in a better light and will also enable them to realize how good this company actually is.
When it comes to the history of this broker house – it starts in 2013, when a London-based corporation, InfiniCare LTD, founded this enterprise and registered it in Saint Vincent and the Grenadines. This marked the beginning of a very successful project, and almost from the first day CTOption attracted traders from all over the world. People were amazed by the services that this broker was offering for extremely affordable prices, and that was also a very important element in the exponential growth of this company. Another highly relevant factor was the fact that CTOption was, and still is, available to traders from the United States and they have access to this website. This fact is important because most other big brokers are prevented from accepting traders from American territory, due to conflicting regulations and laws between US and European Union and some renowned regulatory bodies, like Cyprus Securities Exchange Commission, better known as CySEC. However, since CTOption is still a young broker, the process of licensing is not yet completed, co the company is still free to do business with customers from any region of the world.
Other important features and attributes that make this broker one of the best in the market include its super-efficient and intuitive platform, which is provided by a well-known company called Panda Trading Systems (this software developer has a lot of experience because they provide programs and software solutions since 2006), and revolutionary addition to the website which is called “Replicator”. This new feature is an idea which could bring trading with binary options closer to social networks, which are the most popular places on the internet nowadays, since it allows traders to “follow” other successful traders and to potentially “copy” their investments and activities on the trading website.
However, the global market of trading with binary options is not so safe, and there are lots of dangerous elements and organizations that can have malicious intent and try to steal personal information or money from clients who are involved in financial transactions over the internet. People should always be careful, and binary options are particularly vulnerable area, so all safety measures and precautions should be taken so that trading can be profitable and enjoyable experience and not something which will cause stress and unwanted loss of finances. The fact that scam brokers are present all over the market and that they can sometimes be hard to recognize, is detrimental to other brokers who operate in a safe and honest manner, and this is a case with CTOption as well.
The fact that some people could even imagine a CTOption scam is enough motivation for people behind this project to try their best to prove to potential customers that this broker is not operating in this manner and that trading with CTOption is perfectly safe and protected. All safety protocols are followed and all security procedures are incorporated into daily activities of this broker house so people should have no fears about the safety of their personal information or investments. Modern platform provided by Panda TS is equipped with all necessary technological and software solutions, so we can clearly see that CTOption scam is not present in any form.
Admittedly, CTOption is currently not regulated by any of the well-known regulatory bodies which govern trading in binary options, such is CySEC for example, and people consider this fact as potential hint about some form of CTOption scam, but experienced traders know that process of attaining one of those licenses can take up to 3-4 yours and that this broker house was only established in late 2013. This is a perfectly reasonable and honest explanation, and people who run this broker expect that the process will be finished very soon and they will have the official stamp from on of those agencies. Until that is completed, traders will have to believe thousands of other satisfied customers who were participating in trading with binary options through this website and had no problems or complaints. Also, if there are complaints or questions of any kind, CTOption has one of the best customer support services and they will surely provide answers and solutions to any problem in the most efficient manner.
Binary options with short time frames are offered on many trading platforms, like 24Option for instance. Generally, the most challenging part of this type of trading is the unpredictable movement of the market, which can change direction quickly, unequally and without a pattern. Most of the known strategies are based on slower movements, so by using them you may fail to react promptly to this fast-paced market environment. However, there are several ways to make a strategy which is applicable to short time frames:
- Leading indicators
Leading indicators, like oscillators, can predict the movements on the market before they happen. These indicators’ goal is to find weakening movements within the market and show when the market is likely to change direction. When you trade binary options on short time frames, when the market moves are unpredictable, more obvious the market changes direction more often than on longer time frames, the best thing to use in order to predict the market movements are leading indicators. There are also lagging indicators, which show the market movements that have already happened. They are ideal for detecting trends on more slowly-moving markets. However, when trading in short time frames, the market changes are so common and quick that lagging indicators are not a good choice, because they are too slow to react in these conditions. If you have by far been using a strategy based on lagging indicators, then you should stick to trading on longer time frames. If you want to start trading binary options in short time frames, you have to change your strategy.
- Candlestick formations
In the fast-paced market movements in short-term trading, candlesticks are also an ideal tool to predict the market’s behavior. Simple candlestick formations are not only easy to understand, but they can create many profitable trades. These formations contain few candlesticks instead of the whole bunch, or they can even contain only one candlestick. They can form in even the most unpredictable market situation. Since they have only one or few candlesticks, they can only predict the nearest future of the market. Even though, because of this, simple candlestick formations are not suitable for long-term trades, they are still a great tool for the short-term ones.
- Short expiration time
Short expiration time is the essence of short-term trading. Due to the unpredictable market within the short time frames, your predictions may be accurate are only for a very short time. Therefore, if you use a short expiration time for binary options, you can be certain that your binary option will expire within the movement you have previously predicted.
The introduction of wrap terminology and increased demand for wrap accounting changed the world of trading. Before wrap accounting forex market had problems similar to binary brokers like Boss Capital, whose advisors plague and steal even in this day and age. Many brokers couldn’t adapt to this form of advisory business and went out of market. Well in fact many of them used their advisor/broker position to make large number of trades that had no profit, but didn’t generate large losses in order to reap the commision fees from those trades. Wrap accounting prevented that with singular flat fee. Trader profited from this, because advisors had to work transparently and effectively in order to earn their pay.
In this case those advisors are paid for advice rather the number of trades done. They are still given money to trade, money which is more known as managed money, but it is in their interest to earn something with that money.
The actual way advisor is earning money is from a certain percetage from your overall account strength. If he earns 1 percent, then if your account balance sits at 50 000 dollars, then his fee at the end of the month will be 500 dollars. As you can see it is in his best interest to give sound advice and to perform as best as he can. If he slacks in his work his payment will be low, and if he performs well then as your balance increases so does his eventual payment. This prevents so called churning, an action advisor would take to earn more, which is disabled with introduction of wrap accounting.
If you are confident in your own trading ability then you should not create wrap account, but go with normal account and avoid giving percetage to a broker/advisor. Then again having some professional help is never really bad, considering that help is helping you to help himself.
Now ,there are two types of options trading on forex, traditional trading and SPOT trading, and more about them will be written in this article.
Traditional forex options trading involves simple call/put orders. This means that buyer has a right, but he is not obliged, to buy desired number of lots of certain currency pair at set time and price. When a buyer does that, he awaits price movement. If price goes bellow the set price he loses the premium he invested. But if price goes up then he can buy those lots for the price that was set, and then sell it for the difference between the price he bought those slots for and the price the currency pair went to.
Two ways of traditional options trading exists. There is American style of options trading in which the buyer can decide to buy those lots at an given moment before the set time. Then there is European style where buyer can only buy those lots at the exact time which was set at the beginning.
SPOT ( Singel Payment Options Trading ) is different from traditional options and I will tell you how and why. In order to earn through SPOT type you have to predict where currency price will be at some point in future. Buyer chooses a scenario and buys lots for it, if that scenario unfolds he will receive payment. This type of options trading is prefferd by many traders because it is easier to work with. Spot offers many different scenarios and that is one of the advantages it has over traditional options trading. But premiums are bigger in this type of trading and traditional trading has more flexibility due to american style of traditional options.
There are few reasons I will list here, which tell you why this type of trading is better than usual forex trading.
First, your loss is limited. You cant lose more than your premium, and there is no limit on how much you can earn. Well, more lots you buy means biger the premium, but those lots give you bigger chance of victory so it evens itself.
Less money is paid upfront, then for example spot on forex trading.
You can use these options, especially SPOT to hedge yourself, if you are not certain that your spot on trade will generate profit.
There are few other benefits forex options trading has, but it also has some downsides too.
One of them is the size of premium. It is not set number, and it varies. SPOT options cant be sold when they are bought and so on. As you can see there are reasons, beyond few I mentioned, that make options inferior to normal curency pairs trading.