Binary Options with MetaTrader

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Figuring out which way the market is going to move next is the single most important thing that you need to do as a binary options trader. There are different strategies that traders implement in order to make their prediction, but every trader knows that technical analysis should be a key element of any strategy.

Throughout the next few sections we’re going to talk about MetaTrader and how technical analysis plays an important role in your success as a binary options trader.

The Importance of Technical Analysis

Buy Sell cubeTechnical analysis is arguably the most important aspect of trading, if not the most important, then it’s right up there amongst the top three. Financial markets are heavily dictated by technical analysis and it would be foolish for a trader to not take this into consideration when trading.

There are three main types of analysis: technical, fundamental, sentiment. Technical and fundamental and definitely the two most important.

What Is MetaTrader?

MetaTrader is a trading platform that helps you with your technical analysis. It was originally created for Forex, but the platform can be used just as well for binary options trading.

Many traders use this platform because the majority of brokers don’t provide a wide range of tools for technical analysis. MetaTrader overcomes this obstacles and ultimately provides the trader with a limitless number of options with regards to technical analysis.

How Can I Use MetaTrader with Binary Options?

Even though trading binary options can sometimes be quite technical, there are many traders who don’t have a lot of technical knowledge. Fortunately for these traders, MetaTrader couldn’t be easier to set-up.

All you need to do is navigate over to the website, a quick Google search will take you there. Then, click the “Download” button and download the platform. The platform is extremely versatile and can be used on Windows, Mac OS, Linux, and even your smartphone.

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Setting-up the program from there is pretty much self-explanatory, but if you get stuck at any point don’t hesitate to press “F1” on your keyboard or navigate over to the “Help” link located at the top menu of the terminal.

What Are the Advantages?

The advantages of MetaTrader really are endless and will only be limited by your imagination. Take a look at the list below to get an idea of some of the most important benefits.

    • An extremely simple yet innovative user-interface.
    • A wide range of language options available, so if you’re not too good with English don’t worry, chances are that your native language will be available.
    • The platform features advanced charting capabilities that can’t be found with most brokers.
    • You can also take advantage of “Expert Advisors”, which can allow you to completely automate your trading.
    • You can also take advantage of the vast amount of customization options. Whether you want to change the colour of the charts, adjust the size, have multiple charts on one screen, or even develop your own indicator, you can do it all.

An Example of a Binary Options Trade with MetaTrader

Considering that every trade can be completely different, it’s understandable that traders would want an example to put all of this information into perspective. Unfortunately, it can be difficult to provide a detailed example because of the wide range of options that MetaTrader offers, but take a look at the example below to get a basic idea of what you can achieve.

  • You decide to use a strategy which has an 86% win-rate.
  • You have an account balance of $5,000 and are willing to risk 2% per trade.
  • Your risk $100 per trade and set-up 20 trades, which equals an overall investment of $2,000.
  • $2,000 invested multiplied by an 86% win-rate multiplied by the broker’s 81% payout equals $1,393.2.
  • This comes to a 69.66% return on your investment.