We have repeatedly discussed the interface of the Olymp Trade platform. Today, I would like to return to what Strike Price is and say a few words about the little-known function that is Trade Scaling. Both terms apply when your trading is based on Fixed Time Trades.
Strike Prices on Olymp Trade
The whole idea of Fixed Time Trades is based on the prediction of whether the price will rise or fall over a set period of time, which on the platform is referred to as Duration. The price rises or falls in relation to a reference price, which is usually the price of the asset at the time the position is opened. This price is of course the Strike Price.
If we open a position for a falling price, we count on the price being lower than the Strike Price after a defined period of time. If this is the case, a premium is paid, e.g. 82% of the amount invested in the transaction.
The opposite is true for Up Trades. Here we assume that the price will rise within a defined period of time. If the price is higher than the Strike Price at the end of the trade, then we receive a premium.
However, Strike Price does not necessarily always have to be the market price at the time the position is opened. We can choose a slightly higher or lower price. This affects the size of the premium paid. If your platform does not show the option to choose Strike Price on the chart, you probably need to make some changes in your platform settings. The easiest way is to go into settings. Select the Chart tab. There make sure that the Strike Prices box is checked. In the picture below you will find an explanation.
If Strike Price is simply the current market price, the premium for Up and Down trades will usually be the same.
However, it is possible to get a higher premium for an open position if you select a different Strike Price from the chart. By setting the Strike Price higher than the current price of the asset, you will get a higher premium for Up trades.
Conversely, if you set the Strike Price below the market price, you may receive a higher premium for Down trades.
The differences in premiums will not be large, but also the selectable Strike Prices do not deviate significantly from the current market price. This feature can therefore increase your profits if your strategy for Fixed Time Trades is highly efficient. It is therefore worth taking advantage of the possibility to choose a different Strike Price than the default one.
Trade Scaling on the Olymp Trade platform
Another thing I wanted to discuss today is Trade Scaling. This feature is available for Fixed Time Trades, but it is disabled by default. To enable it, check the Trade Scaling box in the Main tab of the platform settings.
As you can see in the image above, division and multiplication symbols have appeared under the Amount field instead of “-” and “+”. This function allows you to quickly increase or decrease the Amount by multiplying or dividing times 2. Personally, I would like the authors of the platform to develop this function by allowing you to choose the multiplier. This function is extremely helpful if your money management is based on martingale.
Summary
I hope today’s article has helped you trade more effectively using Fixed Time Trades. If you have any interesting experiences with setting strike prices and using Trade Scaling, be sure to share them in the comments section below.
Finally, as always, we wish you successful trading!
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