This month, Anyoption has launched its new trading feature Bubbles, and it is already creating quite a buzz. The feature is quite easy to use and will certainly be a popular feature. Here, we will explain how the Bubble feature works, elaborate on some pros and cons, and answer some possible questions you may have.
How does the Bubble feature work?
First you select the asset you want to trade. Then you want to enter the amount of money you want to invest. You can either invest in the investment range set by the platform or go outside of the range using the “other amount box” in the lower left corner. Your next move is to draw your bubble on the platform. You will draw the bubble in the area you think the line will eventually hit, and you can make the bubble bigger or smaller. The smaller the bubble the more you profit, and the bigger the bubble the less you profit. You will then get a calculated rate of return (up to 1000%) that is determined by the probability of that scenario coming true. If the trending line travels into your bubble, then the bubble will burst and you will receive your profits. If the trending line does not hit the inside of your bubble, then you will lose your investment.
to Start Bubble Trading
Pros and Cons
There are definitely some pros and cons in the Bubble platform. The overall pro of the Bubble platform is that you have the chance to earn more than the standard 80% of profit when you win. The overall con of the bubble platform is that the risk of you losing is higher. Instead of just betting that the asset will go above or below the initial price, you are pinpointing on a platform where that trending line will hit.
The pro for traders who draw wider bubbles is that they can create better chances of winning for themselves. The con of that, however, is that they may not profit much from their investment. The pro for traders who draw smaller bubbles is that if the bubble hits they can make a very hefty profit (up to 1000%). However, the con is that they take more of a risk of losing when drawing smaller bubbles. A perk for losing traders is that Anyoption offers a refund up to 25% of the investment made.
Would traders profit more from a bigger or smaller bubble?
That depends. An investment of a $1,000 has a better chance of being profited from a bigger bubble than a smaller. If you create a big bubble and win, and the platform says that you will earn a 41% profit, you are gaining a $410 profit plus the initial investment. But if you create a smaller bubble and lose, then that’s a $1,000 loss. However, if you do win with a smaller bubble, you will earn more than $410.
Smaller bets, on the other hand, can be more of a profit to small bubbles than bigger ones. If you bet a $100 dollars on a smaller bubble and the platform says that you will earn 410% in profit, then that’s a total of $510 you have earned. If you lose, then you only lost $100. If you place the same bet on a bigger bubble, then you will definitely earn less than $510.
When is the right time to use this tool?
It would probably be best to use this tool on assets you are more knowledgeable in. The more you know about the asset and how it moves, the better the chance of you placing the bubble in the winning area of the platform. It would also be ideal to use the platform when the market is more predictable and in a steady period, where the trending line is more consistent.
Should new traders use the platform?
Since the Bubble platform is a bit riskier than a traditional binary option trading platform, it may not be ideal for new traders to use. It may be more beneficial for a new trader to get their feet wet in the traditional platform first before jumping into the Bubble platform pool. On the other hand, if the new trader has great knowledge in asset trends, strategies, etc. and feel comfortable in using the platform, then they may find some luck. But it should probably be advised, for any trader really, to make smaller bets and/or create big bubbles first and start slow before taking riskier chances.
Overall, Anyoption’s Bubble platform is an innovative tool that will create a new frontier in the world of binary option trading.