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Best options trading platform in Singapore

July 19, 2021
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Trading platform capabilities for trade options in Singapore

An option is a contract under which the buyer of an option receives the right to buy/sell an asset (commodity, security, currency, etc.) at a certain point in time at a predetermined price.

The obligation to fulfill the option lies on its seller, who can act both as the buyer (put option) and the seller (call option) of the underlying asset.

By the time of execution, the following types of tools are distinguished:

  1. European - can be exercised only on the last day of the term;
  2. The American option - can be exercised at any time before the end of the contract;
  3. Quasi-American - which is redeemed by the owner in certain time intervals (the contract provides for one or more segments).

A quotation is mainly the identification and fixing of prices of deals concluded on the exchange, in addition - it is also an analysis of market information that characterizes the market conditions. The exchange quotation is used as a reference point when concluding contracts.

Best charts for trading options: which chart to choose for trading 

In the trading terminal, there are 3 main types of charts to display the movement of options:

- Line chart - this is the simplest of the charts. This type of chart is usually based on the closing points of a particular time frame. This type of chart does not give you a complete picture of price movements (currency rates), it sort of "averages" everything that is happening with the price. It is convenient mainly for receiving a general picture of price movement.

- Bars chart - is more convenient way to represent price on the chart than line charts.

Each such figure - "bar" shows the whole price movement for a certain period of time (timeframe: 1 min, 5 min, 15 min, 1 hour, 4 hours, 1 day, 1 week, 1 month).

Bars chart contains the following elements:

- Opening price - the price value at the beginning of a particular timeframe

- Close price - this is the price value at the end of a specific time frame

- Maximum price is the highest price value for the whole time frame

- Minimum price is the minimum value of the price for the whole timeframe

- Japanese candlesticks chart is the most popular and most convenient chart, according to the absolute majority of traders. The chart consists of Japanese candlesticks. Each Japanese candlestick chart shows us the price movement for a certain period of time - the timeframe: 1 min, 5 min, 15 min, 1 hour, 4 hours, 1 day, 1 week, 1 month.

The Japanese candlesticks chart contains the following elements:

- Opening price - the price value at the beginning of a particular timeframe

- Close price - this is the price value at the end of a specific time frame

- Highest price is the highest price value for the whole time frame

- The minimum price is the minimum value of the price for the whole time interval

Indicators are one of the most important parts of the whole live options charting process. Indicators help you decide at what point you should open or close your trading position.

Also, the use of indicators should be judicious. Do not use many indicators on one chart. This can lead to misinformation as there are too many elements on the chart and it will become much harder to distinguish between them. To avoid this, learn to use the indicators you need individually. Only then use them in conjunction, or as required by your trading scheme.

Moving Average Convergence Divergence (MACD) works on the principle of convergence - divergence or scientifically - convergence - divergence of moving averages.

The indicator shows two moving averages, one of which is a short term (fast) moving average, and the other is a long term (slow) moving average. Below the chart, these moving averages move as a histogram (the difference between the fast MACD line and the slow MACD line).

MACD indicator on IQ Option platform
MACD indicator on IQ Option platform

Relative Strength Index (RSI) - is one of the most popular technical analysis tools on the chart of all Internet traders in the financial market. And no wonder, because RSI indicator trading signals are simple and reliable, and the indicator itself is very multifunctional.

RSI indicator on IQ Option platform
RSI indicator on IQ Option platform

Moving Average (MA) - the main indicator widely used for technical analysis of markets. It represents a line, which generally repeats the movement of price formations on the chart, but at the same time non-significant price fluctuations are smoothed. As a result, a trader gets a picture showing the main market trends. Determining the direction of the current trend is easy and purely visually when looking at the chart. Therefore, the main value of moving averages is the ability to recognize the moments of convergence and divergence of lines with different periods, which makes it possible to forecast the end and beginning of trends with high accuracy.

MA indicator on IQ Option platform
MA indicator on IQ Option platform

The Average Directional Movement Index (ADX) is a professional tool to identify trend movements. The indicator is widely used by traders around the world, and is very comfortable at the developing market of binary options, based on a similar ideology.

ADX technical indicator consists of three lines:

  1. The blue line is the directional indicator +DI
  2. The red line is a directional indicator -DI
  3. The dark green line is the ADX

If the ADX indicator is rising, it indicates that the market is trending.

The signal to buy is formed when +DI rises above -DI and at the same time the ADX itself is rising.

ADX indicator on IQ Option platform
ADX indicator on IQ Option platform

Types of binary options 

A binary option is called a "binary" option because the trade has only two possible outcomes: win or lose. (RHL).

This means that the asset on which the option is purchased must reach a certain price or exchange rate level in order for the trader to make his profit.

When trading Up/Down binary options, the trader determines whether the price of the underlying asset will change up or down relative to the strike price fixed at the time of contract conclusion. The outcome of a Call/Put binary option is determined by the price of the underlying instrument at the time of expiration of the contract. If the prediction is correct, the option is profitable and the trader gets back the premium paid (option price) plus an amount equal to the applicable payout ratio (between 70% and 90%) multiplied by the premium amount. In case the trader's forecast is wrong, it means that at the time the option expires, the spot price was below the strike in the Up/Call option (or higher in Down/Put) and the contract is at a loss. In this case, the trader does not profit and loses the premium paid.

High/Low binary option is a type of binary options, which is suitable for the trader who is interested in short-term transactions, in other words in transactions with very small fluctuations in asset prices. Payouts here will vary in the range of 175%-190% of the investment amount.

When you trade Call/Put options, you need to predict what the price of the asset will be at a certain time and date. When it comes to touch / no touch options, you are expected to predict whether the price of the asset will reach certain price levels or not. Boundary binary options give the trader the opportunity to speculate if the price of the asset will stay in a certain price range for a certain period of time.

In short, the trader chooses an asset and selects an expiration time and two price levels, the first below the current price and the second above the current price. If the price of the asset is between these two levels at the time of expiration, the trade will be closed in the money. Accordingly, if the price is below the lower barrier or above the upper barrier, the trade will be closed without money.

Range binary options trading is becoming increasingly popular among many traders, especially those seeking high returns. The problem is that not every binary options broker offers this type of tool. Among the legitimate binary options brokers, only a few trading platforms offer range trading. One of the platforms is IQ Option.

In/Out binary options are similar to boundary options. This is a type of contract in which the trader predicts whether the price of an asset will stay within a certain price range (in) or move out of the price range (out) before the contract expires. There aren't as many binary options brokers who offer this type of structure than those who offer call/put contracts, but there are still plenty to choose from - and we'll be sure to review some of them in the reviews section.

One Touch Binary option profit payout is made as soon as the price of the underlying asset reaches a predetermined barrier. This barrier is commonly known as a "trigger". Once the trigger level is reached, you can have your end result - either profit or nothing. One Touch Binary Options are considered the most preferred options for traders when the trader is 100% certain that the value of the asset will persistently move in a particular direction (up or down) and reach the trigger value.

No Touch binary options are the opposite of the One Touch binary options mentioned above. With a No Touch Binary option, you are betting that the underlying asset will not reach a certain value level. Similar to the One Touch Binary option, the trader must determine a specific price above or below the current price announced by the broker according to the changes in the market. Your trade determines whether the price reaches the specified level during the expiration time.

Ladder binary options is a relatively new type of trade. At first glance it seems complicated, but if you figure it out, you can make good money. The principle of working with Ladder binary options resembles working with One touch binary options, with the difference that in Ladder there can be several touches, and the more of them, the more money you make.

How to start options trading in Singapore

There are a number of platforms to trade options on. We will consider iqoption.com.

1.    To start options trading you need to sign up. On the right side of the main page you need to choose Sign Up

2.    The registration form will appear:

Registration form on IQ Option platform
Registration form on IQ Option platform

3. After filling the form you will be directed to the page for choosing a demo or a real account. A demonstrational account is suitable for beginners, who are only starting to explore the trading world. After you train your skills with virtual money, you can open a real account any time you wish. 

To replenish your account for options trading you need to click the Deposit button. There are multiple options for account replenishment, they are shown below:

Account replenishment  on IQ Option platform
Account replenishment on IQ Option platform

We hope your trading adventure will be successful with the useful information above.