Daweda Exchange is closed! Try our BDSwiss instead!
Some of you have maybe heard that Daweda Exchange provides different trading experience than other binary options brokers on the market. Daweda Exchange offers trading experience in exchanging contracts which might be another interesting opportunity traders will want to try. What binary options exchange means is that traders trade against each other and not against the house.
But, how to trade with exchanging contracts on Daweda Exchange? We will explain more in our detailed guide.
First Steps With Daweda Exchange
Like with every brokerage company, traders should first open the account with Daweda Exchange before they can start placing trades. The registration is free and traders just need to fill required fields like name, email, and phone. During the registration traders also need to choose their password that will be used for further logins on their trading account.
After completing the registration with Daweda Exchange, traders will immediately be connected with Daweda Exchange demo account which might be a good place to start with. According to the broker, a demo account is exactly the same as Daweda Exchange real account, so it is good to check demo platform and get some insights about it before you start placing real trades. Trading with demo account allows traders to place risk-free trades and to practice without the need to lose their real funds. Daweda Exchange demo account is injected with $500 virtual funds.
Placing Trades with Daweda Exchange
Just like on Daweda Exchange demo, trading with real account includes the same trading platform and features, except traders, invest their real money. The moment the trader is prepared to switch from demo to real account, he can easily make a deposit with Daweda Exchange and start trading. We think it is great that traders take the advantage of trading with the demo account first.
When logged on their Daweda Exchange trading accounts, traders will see the interface with a nice overview over the trading platform. The upper part of the platform offers an assortment of trading assets while under them traders will see charts and more information about the call and put orders.
Choose the Asset
In order to place a trade with Daweda, traders first need to choose a preferred asset. Traders can choose between stocks, indices, commodities and Forex. When asset group has chosen the list below the chart will show available assets traders can choose to trade with.
For example, when we have picked commodities, we have been allowed to choose trade with Gold, or Oil. This list also shows the expiry time and real time values for easier orientation.
The trading chart allows traders to see different time frames for each asset they analyze. The default view shows one hour chart, but this can be modified according to preferences (4 hours, daily or weekly overview).
Select the Number of Contracts
The next logical step is to set preferred number of contracts. Daweda Exchange platform allows to simply pick +/- button to choose how many contracts will be placed. When adjusting the contract number, the platform will automatically change the potential profit. It is important to say that Daweda Exchange charges traders $0,50 for every placed trade which is visible under a number of contracts box.
Decide Whether you will Trade UP or DOWN
After choosing the number of contracts, traders have to decide if they will trade PUT or CALL. If the trader thinks that the level of the asset will increase then they will choose UP button and if it is the opposite, then they will pick DOWN.
The values of contracts can also be easily modified next to UP/DOWN buttons using the +/- signs.
Confirm the Order and Execute a Trade
The latest step that needs to be done is to confirm the trade. When a trader is ready to execute the trade, the pop-up window will automatically appear. If the trader approves the action he needs to confirm the trade by pressing Confirm button. If a trader makes no action in next 5 seconds, the trade will automatically be canceled and trader has to choose another trade.
The pop-up window shows the most important information about the trade that will be executed. We have chosen to trade UP on Gold and our potential profit was $10.
After we have accepted the trade, the right side of the Daweda platform will show the information about our trade – this includes the name of the asset and expiry time.
The open position will also be visible on the chart with more detailed information. While trader waits for a trade to be executed, Daweda gives the option to hedge the trade.
After the trade has been executed traders will be able to see their result.
Hedge the Trade Before the Expiry Time
Like we have already mentioned above, traders are able to hedge the trade if they additionally want to reduce the risk and change their trading strategy. According to Daweda Exchange, this is very accepted trading strategy and often used by many traders. Hedging can be applied to different types of trading strategies.
What does Hedging Mean?
For example, if a trader has decided to trade Gold and he has made a decision to buy Call contract at the level 1,251.37 like we did in our Daweda demo account. The value 1,251.37 is called Point A, since we have predicted that the price will go higher than 1,251.63 at specific expiry time.
Since there is always a doubt that the Gold won’t reach predicted value until expiry time ends, several brokers (including Daweda), give you the option to protect your trade and hedge against that trade. Since the position is already opened, traders can buy a preferred amount of Put contracts in order to reduce the potential loss.
What happens is that one option will possibly end in the money, while the other one will end out of the money which will balance your investments.
If you are interested in trading with Daweda Exchange, find out more information about this broker in our Daweda Exchange review. We have found valuable information that might be helpful for traders before they decide to register and start placing trades.