Some traders keep trading journals, some do not see the point in keeping one: but across the board, it is safe to say, having a review of one’s trading activities is valuable. In general, that’s what a Trade Blotter is about, giving you a recap of your trading activities.
Description of a Trade Blotter
A Trade Blotter is a record of the number of trades transacted over a certain period as well as the details of each trade. Usually, the period is a 24-hours period, and the details provided vary.
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Details in a Trade Blotter in Binary Options
- Through which market a trade occurred
- Time of placing a trade
- Price at which the trade was placed
- Order size per trade (quantity)
- Position taken (buy, sell, or short) as well as any extension (rollover or double over)
Understanding a Trade Blotter In-depth
A Trade Blotter is automatically prepared by the software platform of a good broker. In general, the trade blotter is a log, but in some situations, a trader can customize what details are and are not shown. Brokers may also offer to add more details, like cancelled trades.
The Purpose of a Trade Blotter
The purpose of a Trade Blotter is mutually beneficial to both the broker and the trader. However, based on usage, it is more important to the trader.
- For the Broker
- Providing a Trade Blotter breeds trust and reliability in the eyes of the trader community
- Helps for confirmations and dismissals when issues arise
- For the Trader
- Provides details that can be used as reference should issues arise
- Provides a detailed but concise information that can be used for a review and/or for planning
How is a Trade Blotter Used by a Trader in Binary Options
This is the important part, how do you use a Trade Blotter as a Trader. Primarily to review your trading activity for a certain period (say a day): you should be able to find out on what trades you did well and when you could have done better. You could then work on your findings to get better in your trading.
You could also use a Trade Blotter as a tool when formulating a trading strategy or fine-tuning an existing strategy. Those details sure would come in handy.
In a related vein, you could also use a Trade Blotter to keep track of the reliability of your broker. While it pays to deal with a reliable broker, it pays even more to be sure they maintain their reliability especially on direct trading activity.