TradEqual Demo Review
A TradEqual demo account will provide free access to the binary exchange platform where you can create your own binary options and sell them to other traders. With one account, you can trade and sell binary options.
You can open a free demo account with $1,000 and use it for one week.
*TradEqual closed down in 2017*
TradEqual demo will show you the real trading platform, but you won’t risk any funds. The demo account is extremely helpful if it is your first time on the exchange.
To become profitable, it is important to understand how the software works. You have to think from both perspectives: the Seller’s and the Buyer’s.
Buying binary options on the exchange is similar to the standard brokers, so we advise you to spend more time in the demo as a Seller.
How to open a TradEqual demo account
You won’t find a button that says “Open Demo” on the website. You have to load a separate application that replicates the real trading platform. Just contact TradEqual and ask to be sent the link with the demo app.
Once you register, you will have your account live for a week. It isn’t much time, so you better use it wisely. You will have $1,000 in demo money and the minimum trade is $15.
TradEqual demo trading
With one account, you can be both a Seller and a Buyer. As a Seller, you can create a binary option and sell it to the Buyers. If you decide to sell options, you have to consider your Risk and the Buyer’s payout.
The Sellers on the exchange compete to offer the best payouts, so if you act as a Buyers, you will benefit from high payouts.
Selling binary options
Let’s sell a GBP/USD Call option. We are offering the Buyers a 97% payout, and we are risking $100. That means if the option expires in the Buyer’s favor, we will lose our $100.
On the other side the, Buyer can invest up to $103 in our option because 97% of $103 = $100, which is our Risk.
We set the expiry time to one hour and publish the option on the exchange where other traders can see it and invest in it.
If the option expires in our favor (Lower), we will make a net profit of $103 (we risk $100 with 103% payout).
If the option expires in the Buyer’s favor (Higher), he or she will make net profit of $100 (he or she invested $103 with a 97% payout).
It is important to remember that when you sell a Call option, you actually believe that the price will finish lower at expiry. When you sell Put option, you think that the market price will be higher.
Buying binary options
Let’s buy a GBP/USD Put option. We believe the GBP/USD price will finish lower at expiry, so we buy a Put option. First, we need to check the Order Book where we see the current top three payouts for our option.
In our example, we see 97% up to $103, 93% up to $537, and 92% up to $1,000, which means if we want to profit with the best payout, we can invest $103.
If we want to invest $150, for example, we will be paid a 97% payout on $103 plus a 93% payout on the rest ($150 - $103 = $47).
Now, you get the idea. For the higher payouts, the Sellers are willing to risk less money. When you act as a Buyer, you must always to check the Order Book to see the best payouts.
How to use TradEqual demo in a smart way
You need to carefully deciding your Risk and the Buyer’s payout. Offering bigger payouts to the buyers means less profit for you, so you need to find the balance between your profit and the Buyer’s payout. The demo account could be helpful in mastering your selling skills on the exchange.
It is important for you to know that if a Seller is offering a big payout on a Call option, he or she actually believes that the Put option will be successful. You better spend some time in selling options to understand the logic of a Seller. This way you will have better chances to become a profitable Buyer.
We advise you using the TradEqual demo to master your skills on the platform. Once you become good enough, you can open a real account and make a deposit. The binary trading requires you to quickly make decisions, so you better be a pro on the platform.
It is good that you can trade on exchange network and the broker won’t make it hard for you, but in the end someone will lose: the Seller or the Buyer. If you don’t want to lose, we recommend you start learning on the demo first.