Originally posted by Michael Hodges. For the full review click here
The recently released new Option Builder tool is advertised as a method for expert and novice traders to customize their trades according to their own trading styles. The tool, which is very versatile, allows traders to pick more than just call/put and hourly, daily or weekly expiration. The tool allows traders to define their own trading parameters so that the options fit their trading style. You may have heard of this under different broker, thatís because it is powered by the SpotOption trading platform which provides execution and market making for nearly 80% of current binary options brokers.
Why the Option Builder Tool Doesnít Suck
There is one real advantage I see in the Option Builder Tool. It allows short term traders to trade overnight. For the most part short term binary option expirations are limited to the day of the trade. They will expire sometime that day up to end of the day. Not many brokers, none that I know of at this time, allow for overnight or day to day expiration. With the Options Builder Tool a trader can enter a trade and then set the expiration for sometime during the next day, provided the market is open on the day. This tool will not work for trades over the weekend.
Why the Option Builder Tool Sucks
I started out with this assignment thinking that this tool would be really cool. The idea that I could set up my own binary options was awesome! I often want to trade options for longer or shorter than the preset choices on my platform and was looking forward to the chance of defining my own trades. In reality the tool is extremely limited and everything I read leading me up to the tool itself was misleading. Maybe Iím gullible, I donít know, but what I read lead me to believe there was a large amount of flexibility in the tool. What I found was that it is very limited and not even suited to my style of trading. I like to trade on a weekly and monthly basis, capturing movements on the daily charts with entries on the hourly charts. This tool, like many other binary options brokers and platforms, is totally geared toward day traders and only allows expirations up to 24 hours out.