In this article we will look at how to trade binary options through the MetaTrader 4 terminal using the example of the GrandCapital broker.
The main advantage of trading binary options in the MetaTrader 4 terminal is that you can use any trading tools to analyze charts , be it non-standard indicators for binary options or trading robots for binary options .
The principle of binary options trading in Grand Capital
An option is one of the instruments used for trading in financial markets. It can be viewed as an asset (or contract) that can generate profit. We will consider one of the types of this instrument: binary options.
The essence of working with this asset comes down to the following: the trader makes a certain bet (indicates the amount he is willing to risk) that the quotes of the selected stock, currency pair or cryptocurrency will go up or down after a certain time (also set by the trader).
To trade options contracts in MetaTrader 4, you will need to download this trading platform for FREE in your personal account on the broker’s website.
Then you need to open a new “options” account there. It is intended only for carrying out operations with binary options.
We strongly recommend that you work with a demo account first. This opportunity allows you to gain practical skills in binary options trading without risking your own funds. You can open a demo account through your personal account on the broker’s website or a trading terminal by selecting “options” next to the “Account Type” column.
To open a new account directly on the website, in your Grand Capital personal account, select Binary Options and click Demo Account:
An important feature of binary options trading is that traders can predict in advance the size of possible losses or profits. These indicators do not depend on how much the rate of the selected asset changes. Thanks to this feature, you can reduce the degree of risk when working in the financial market and develop a strategy that will not depend on sudden news or events that affect quotes. In addition, traders often use binary options to hedge the risks of transactions made at spot rates. When opening an order for this type of contract, you need to set the following parameters:
- investment amount (that is, how much you are willing to spend);
- contract expiration time (the period after which the option closes);
- type of contract (Put or Call, respectively, sale or purchase).
How to trade binary options in the MetaTrader4 terminal?
To open a new deal, select “new order” and specify:
- Investment size. This parameter is entered in the Volume field. For example, if you enter 11.10, this means that the specific contract will be purchased for the amount of 11 dollars and 10 cents. Or, to put it another way, you risk losing so much money if the price turns in the opposite direction.
- Duration of the contract. This indicator is entered in the “Comments” field. The time should be set in multiples of one minute. For example, you can enter 5 or 10 minutes. Fractional numbers (5.05 or otherwise) are prohibited (more details below in the article).
- Contract type . A Call option refers to a situation where you buy (Buy) an asset. Accordingly, a Put type contract involves opening a sell order (Sell).
How to set the expiration time of an option in the MetaTrader4 terminal. Methods for setting expiration time in MT4
Expiration is (in stock exchange terminology) a time interval after which the binary option automatically ends. The MetaTrader4 trading terminal allows you to specify complex dates and periods. In particular, the following parameters are allowed:
- 10H40m – the option transaction closes at 10:40 am;
- 2 hour 20 Min 30 sec – the deal will close at 2 hours 20 minutes and 30 seconds;
- 22:05:50 - the transaction will close at 22 hours 5 minutes and 50 seconds.
The trading terminal allows you to specify the closing time of a transaction in different ways:
- d or day - day;
- h or hour – hour;
- s or second – seconds;
- other symbol combinations are minutes.
When specifying the option expiration date, you must enter the time separated by a colon (for example, 2:40). The case of letters does not matter.
What is the profit percentage when trading binary options at Grand Capital?
Profit when trading this instrument depends on several parameters, including the type (Call or Put) and duration of the contract. On average, the coefficient for each option will be 75%. On the broker's website in the corresponding section, more detailed information is provided that allows you to clarify the profit margin.
This type of trading instrument expands the range of earning opportunities. The income of a trader working with two-touch options consists of two parameters:
- choosing the correct direction of quote movement (up or down);
- the speed of price movement (or how much it has changed compared to the original value).
In order to make money on this type of option, it is necessary not only to set the direction of price movement, but also the level that it must reach before the option closes (expiration time ends). Transactions to buy or sell a contract are placed through Buy Limit and Sell Limit. To open an option in two taps, you need to click on the “new order” icon in the trading terminal:
In the window that appears, opposite the “Type” tab, you need to set a “pending order”:
The levels that the price must reach are set according to the following principle:
- If you assume that quotes should first fall below the level you set and then rise to the second, then you need to select a Buy Limit order.
- If you expect that the quote will first rise and then break through the lower level, you need to select Sell Limit.
Then, in the “Volume” and “Comment” fields, you need to enter the amount you plan to invest in the transaction and the expiration time of the option. After that, in “at price” you indicate the first level that the price should break through, and in “Take Profit” - the second. Once you have completed entering the parameters, click on the “Set Order” button.
In the window that appears, click on “OK” (provided that the entered parameters are correct):
All data on the placed order is shown in the “Trade” tab below the balance line. The levels that the price must touch are marked on the chart with dotted lines:
In the “Comments” column you can see the expiration time of the placed order. If this option is hidden, then you need to right-click on the “Trade” tab:
In addition to the expiration time, the “Comments” field contains the basic values of the premium that can be received if the placed order turns out to be profitable.
How to change option type? The type of options is set through your personal account. To do this, you need to go to the “My Accounts” section and opposite the accounts you need to click on “Actions”, and then on “Change option type”.
See also:
How to choose a binary options broker
To leave a comment, you must register or log in to your account.