Best options trading platform in Malaysia
The options market is filled with various trades and signals that help traders get a clear understanding of the underlying positions and their trend. Options platforms are extremely useful in the Forex market. These platforms allow traders to test, monitor and trade options. In the next article, we will discuss how an options trading platform can be useful.
So, an option is an agreement or a contract between a seller and a buyer of a commodity or an asset. In such a contract, the price of an asset is fixed, which may be in the future, i.e. the parties to the commercial transaction agree in advance that in the future the goods can be sold or bought at this very price, despite the actual price difference in the market and in the contract.
Regardless of which type is used, they are all divided into two large types:
- CALL option - a contract by which you get the right to buy an asset at any agreed price. Let's say you take a CALL option to buy a stock for $ 50. The contract expires in 3 months. If the share price becomes $ 70 after 3 months, the option buyer exercises his right to buy. And he wins $ 20 a share on the trade. If the stock doesn't go up, the buyer simply doesn't buy it.
- PUT option - an agreement giving the right to sell an asset at a certain price. Here the situation is reversed. You assume that the share price will fall and you buy a put option. That is, you have the right to sell a share for $ 50 after 3 months. If after 3 months the price drops to $ 40, you can exercise your right to sell the share at $ 50.
One of the things you need to look for in the best options trading platform is the charting index. The platform must have reliable and easy-to-use option trading charts and indicators. There should also be a function to add and remove indices. Some popular indicators for options trading will be moving averages, exponential moving averages, steeper and lower curves in addition to varied lines. The best alternative trading platform will provide you with these moving averages and other indicators. On our platform, these are the MACD, RSI, Japanese candlestick charts and others. You can customize them for yourself.
Using indices in an options trading platform is very useful. They allow you to determine the price movement of the contract.
There are a lot of indicators, each useful in its own way. We'll look at the easiest to use.
- RSI indicator.RSI - relative strength index - is a technical analysis indicator that determines the strength of a trend and the likelihood of its change. In simple words, it is an indicator of oversold / overbought of an asset / coin. It helps to define buy / sell zones well. Like other indicators, it does not give a 100% chance of entering / exiting a position, but it shows the market mood quite well.
- MACD. The logic behind the MACD is that the slow moving average shows the long-term market trend, while the short one shows what will happen on the trading floor now or in the near future. If there is a strong difference between these two indicators, we can talk about a state of strong overbought or oversold. Also, the moving averages can converge, on the contrary, which indicates the formation of a state of price equilibrium in the market.
- EMA (Exponential Moving Average) is an exponential moving average, determined by adding a certain fraction of the current closing price to the previous value of the moving average.
Another thing an options trading platform can do is help you do some research on market trends. He can easily provide you with a list of trending options.
A trend is the general direction in which quotes are moving. Usually, the movement occurs in waves, and you can determine the general direction of movement - the direction of the trend - on the chart. For example, using a trend line. A trend line is drawn at the lows or highs of the daily or monthly prices on the chart.
Whenever you trade options, you should keep in mind that you need more than just indicators. It is also wise to use fundamental data such as a country's economy, market depth, exchange rates, and information from various brokerage firms.
Trading options can be very complex, and it is for this reason that you want to use an options trading platform that is easy to understand. It should also have features that can help you create simple and fast transactions without much investment. There is no need to download any options trading applications. All you need to do is register with our brokerage company. Once you become a member, you can easily download the platform and start trading instantly.
The options trading platform helps to provide signals for options trading. This will help the dealer start and close a position quickly. Our platform provides easy access to historical data and current option quotes.
Types of binary options?
The best platform for options trading will offer you, in addition to classic options, also binary options.
A binary option is also a kind of contract, the terms of which are negotiated in advance. The trader receives a profit if the agreed conditions are met before the end of the specified time. A binary options contract can be entered into for various assets (stocks, commodities, currencies, indices).
There are different types of such contracts, they are similar, everywhere you need to guess how the price of the selected asset will behave at a certain point in time (expiration).
Expiration - the closing time of the rate, which is set by the trader on the platform with the broker. Expiration can be short-term (30 seconds, 1 minute, 5 minutes) and long-term (from 15 minutes to 1 month).
There are 2 main options in total: Call and Put (Up and Down) The first is a raise option. The trader opens it if, according to preliminary forecasts, the price will go up. The Put option is the opposite. It is concluded when a decline in the value of an asset is expected. In addition to the main ones, there are other options. In terms of popularity, they are significantly inferior to the first, since using them is somewhat more difficult.
So, these options include:
- One touch. There is a certain range in which the price moves. The trader must predict whether the price chart will cross its upper or lower bar. The advantage of the option is the increased profit. Some brokers increase their reward up to 100 percent or more. But it should be understood that the risks when trading the "One Touch" option increase.
- Range. The principle of the option is the same as in the previous one. However, you should open a deal here if the trader is sure that the chart will not go beyond the range until the end of the expiration.
Binary Options encompass many trading approaches, each with their own level of risk and reward. Dealers profit from daily price fluctuations in several world markets with binary options. The profit can be up to 85%.
The key to your successful trading strategy is risk management. Do not make dozens of transactions per day in the hope of a huge profit. Start small. All types of binary options traded within a brokerage account use some kind of risk management platform to ensure that the decline or gain is reduced as much as possible in the event of a trading strategy failure. Most agents assign a trading threat rating to accounts based on their experience and trading frequency. Generally, higher risk accounts require higher risk management, while lower risk accounts can benefit from lower levels of trading risk.
How to start trading options in Malaysia?
Step one on the best way to get started with options trading is to open a demo account on the best options trading platform in Malaysia. This will allow a person to practice Forex and options trading without using real money. When you want to learn how to trade options, it is always important to practice before entering a more difficult market. The demo account will allow the dealer to practice trading without facing the dangers of investing cash. Demo accounts can be opened on our platform, and when you open, you will find $10,000 in your account, this is a virtual amount, with the help of it, you will buy shares, analyze the correctness of your decision and in the end you will adjust your strategy if you understand that it is unfortunate.
When you want to trade options in Malaysia, it is very important to open a live account in order to get real profits. You can also do this with us, and we offer a great initial deposit of only $10. Many men and women believe that they can be effective in options trading by investing small amounts of money. This is not the most efficient way to trade, but it is worth starting with just a small amount. Once you start investing, it is quite difficult to control losses. It is much better to start with micro sums and simple strategies.
The most common explanation is that they can gain insight into trading decisions. This will not only allow a person to practice their trading skills, but it will also be a great way to understand how to read the market. Once you understand how the market works, it will be easy for you to make smart decisions based on facts rather than emotions.
It is important to stay up to date with market developments. By using free newsletters and online tools, you can stay up to date with what's happening in the market. We give you a convenient interface, updated quotes, convenient indicators that you can customize for yourself. If you have any difficulties, contact the hotline, it works around the clock.
We also recommend using our video tutorial. It is never superfluous, especially if you are a beginner.
Figuring out and practicing how to trade options effectively can provide you with the opportunity to work with different types of organizations. If you are looking for an opportunity to work in mining or commodities, you might consider trading options. If you want to trade currencies, there are numerous options to choose from. As long as you are using the Internet to your advantage and looking for good information, you will be able to trade options like an expert.