Daweda Binary Options
Taking the market by storm, Daweda has introduced a new way to trade options that is a blend of the traditional Vanilla and Binary Options models. Based around their proprietary trading platform, Daweda puts you in the broker's seat and allows you to write options for other investors to trade. The whole model is setup to encourage a peer-to-peer trading environment and going on first impressions, traders love the concept and the ease of use of the platform.
Writing an option is very similar to the more familiar binary option trade. As with entering a binary option trade, you set the instrument and the expiry rate. As you are taking the broker side for the particular option, you also set the payout and the amount you want to risk on the trade. If your counter-party trader is successful, they get this risked amount as a payout. If the option expires in your favour however, you get the trader's invested amount which typically exceeds 125% of your own investment in the option setup.
The whole system really comes into play as a hedging tool. Traders who are investing in binary options on other platforms can off-set some of their trade risk by hedging the same trades on the Daweda platform.
If you're trading binaries, writing your own options on the Daweda platform makes a great addition to your trading portfolio. Trader feed-back has been excellent and we fully expect the model to take off as more and more traders start writing their own options.