What is Turbo Trading? | Definition & Examples


Turbo trading is a leveraged strategy that uses specialized products linked to stocks and indices. They offer both leverage and security with an in-built stop-loss mechanism that protects traders from margin calls and enables quick reactions to asset fluctuations.

Turbo trading in a nutshell

  • Turbo trading features leveraged and hedged products linked to stocks and indices.
  • Turbos have an in-built stop-loss mechanism, known as a knock-out barrier, to prevent margin calls.
  • Long turbo trading profits from rising asset prices, while short trading profits from falling prices.
  • Turbo trading platforms such as Quotex, Pocket Option and Deriv offer accessible, fast and flexible trading options.

Understanding Turbos

Turbos are leveraged and secured products linked to shares and indices. They are the ideal tools for investors or traders to achieve gearing in spite of their challenges. Turbos are also known as warrants or certificates and are traded Over The Counter (OTC) directly between two parties. 

They offer a high level of security by having a built-in stop-loss also known as the knock-out barrier which closes trades automatically when the stop-loss margin is reached, thereby preventing the dreaded margin call from brokers. 

It is a financial investment that enables investors or traders to react to every move of the primary asset. Due to this, your financial asset reflects immediately in the turbo listing with the multiplier effect.

How does Turbo Trading work?

Turbo trading works by investing in or buying a transferable secured product whose value is based on the worth of a primary asset. You basically choose to buy a product either falling or rising.

In any open trade, an investor chooses a knock-out level, i.e. the point where the trade closes if the market turns against it. This means the investor controls the risks in a trade and he knows what he stands to lose or gain in each trade.

Broker:
Regulation:
Yield & Assets:
Advantages:
The offer:
5.0/5
12345
/
Yield: 95%+
100+ Markets
  • Min. deposit $10
  • $10,000 demo
  • Professional platform
  • High profit up to 95%
  • Fast withdrawals
  • Signals
Live-account from $10
  Sign up for free

(Risk warning: Trading is risky)

5.0/5
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MISA
Yield: 97%+
100+ Markets
  • Welcomes international clients
  • Offers high payouts: 90% – 97%+
  • Professional-grade trading platform
  • Swift deposit process
  • Enables Social Trading
  • Provides free bonus incentives
Live-account from $ 5
  Sign up for free

(Risk warning: Trading is risky)

5.0/5
12345
MFSA, GSC, MGA
Yield: 90%+
200+ Markets
  • Supports automated trading
  • Regulated trading
  • Multiple platforms
  • Different financial products
  • MetaTrader 5
  • High yield 90%+
Live-account from $10
  Sign up for free

(Risk warning: Trading is risky)

Broker:
Regulation:
/
Yield & Assets:
Yield: 95%+
100+ Markets
Advantages:
  • Min. deposit $10
  • $10,000 demo
  • Professional platform
  • High profit up to 95%
  • Fast withdrawals
  • Signals
The offer:
Broker:
Regulation:
MISA
Yield & Assets:
Yield: 97%+
100+ Markets
Advantages:
  • Welcomes international clients
  • Offers high payouts: 90% – 97%+
  • Professional-grade trading platform
  • Swift deposit process
  • Enables Social Trading
  • Provides free bonus incentives
The offer:
Broker:
Regulation:
MFSA, GSC, MGA
Yield & Assets:
Yield: 90%+
200+ Markets
Advantages:
  • Supports automated trading
  • Regulated trading
  • Multiple platforms
  • Different financial products
  • MetaTrader 5
  • High yield 90%+
The offer:

Types of Turbo Trading

There are two types of trading and they both allow investors to benefit from the market fluctuations. They are:

  • Long or Bull turbo trading
  • Short or Bear turbo trading

Long Turbo Trading

When the price of the primary asset rises, the long also rises. A trader or investor will buy a long if he predicts the rise of a primary asset and will set his knock-out-level or stop loss below the current price of the primary asset to protect the trade from downward movements. As soon as the trade reaches the stop loss, it closes automatically and only the leftover value will be paid to the trader.

Short Turbo Trading

When the price of the primary asset falls, the short also falls. A trader who predicts the fall of a trade will buy a short and set his stop loss above the current price of the primary asset, thereby protecting his trade from an upward movement. 

However, if a trade goes contrary to the set direction of the long or short trade, a trader will risk losing his entire investment capital. When the market rises, the long rise out of proportion at a high level in accordance with the leverage chosen, while the shortfalls according to the leverage chosen.

When the market is stable, the turbo long or short is influenced by finance cost, which would have a decrease or an increase in its price. There are also turbos with fixed maturity dates and those with no fixed maturity dates.

Pros and Cons of Turbo Trading

Pros of Turbo Trades

  • They are inexpensive and easy to trade
  • Brokers offer liability to trade
  • They offer the ability to move and out of trades quickly
  • They offer the stop-loss option which protects the trade
  • They are subject to pre- and post-trading transparency requirements, i.e. investors assess enough information and trade with strategy
  • The impact of volatility is low
  • The impact of time value is low

Cons of Turbo Trades

  • A trader can lose his entire investment capital if the trade goes contrary to his predictions
  • Setting leverage magnifies both profit and losses
  • Products are not secured against currency risk

Turbo Trading Platforms

Some platforms for turbo trading include:

Quotex

Quotex broker offers the latest technologies and convinces with a modern and user-friendly trading platform. Quotex is ideal for turbo trading, as the execution speed meets the best standards and enables the fastest trades.

Turbo trading is also about being able to react quickly, regardless of location. The mobile platform offers the best opportunities to participate in Turbo Trades in a decentralized manner.

The biggest advantages of Quotex for Turbo Trading are:

  • Full access to learning materials via demo account
  • Minimum deposit of $5 for trading
  • Fast order execution
  • Promotional codes available
› Open up your Quotex account and start trading

(Risk warning: You capital can be at risk)

Pocket Option

Turbo trading is possible with various brokers. Pocket Option also offers a comprehensive range for the trading strategy as well as the best starting conditions. Regular bonuses and promotional codes extend the benefits of the provider and can increase profits.

With over 50 payment methods, no costs for withdrawals as well as a minimum deposit of just $50, Pocket Option is a cost-effective broker. Investments can cause a payout of up to 218%.

Take a look at the platform:

  • 100+ assets for trading
  • payout up to 218%
  • $50 minimum investment amount
  • Invest with a trade amount of $1
  • Quick and digital trading
› Open up your Pocket Option account and start trading

(Risk warning: You capital can be at risk)

Deriv

Simple. Flexible. Reliable. This is how the broker advertises and summarizes the advantages of the platform with the slogan. Deriv allows both CFD trading and trading with multipliers. For this purpose, 2 strong platforms are available, which traders can choose from: Dtrader and Deriv MetaTrader 5. Markets such as cryptocurrencies, commodities, stocks, synthetic indices or even Forex are available for selection and enable a comprehensive range.

Here are the biggest advantages of trading with the broker:

  • Trade with the best platforms
  • Licensed and regulated broker
  • Unlimited virtual funds
  • No minimum deposit needed
  • Sign up for free with only your email adress
› Sign up and capitalize your Deriv trading account

(Risk warning: You capital can be at risk)

Is Turbo Trading a Type of Binary Options?

Yes, turbo trading is a form of binary options trading. In both turbo trading and binary options trading, traders predict whether the price of an asset will rise or fall within a certain period of time. There are some differences in terms of features and risk management, but both trading methods have one key thing in common: they offer binary outcomes. Which means that a trade ends either with a profit, known as “in-the-money”, or with a loss, known as “out-of-the-money”.

Turbo Trading vs Binary Options Trading

Both turbo trading and binary options trading are about predicting the direction of asset price movements within a certain time frame. However, there are several important differences between them:

FeatureTurbo TradingBinary Options Trading
StructureLeveraged and hedged products with stop-loss functionDerivative financial instruments
Market AccessibilityTraded Over The Counter (OTC) directly between partiesTraded on regulated exchanges or platforms
Risk ManagementStop-loss function offers protection against lossesLimited risk due to the predetermined payout structure
Trade DurationNo fixed due datesFixed expiry times
FlexibilityAllows a quick response to market fluctuationsLimited flexibility in adjusting trades
Profit PotentialLeverage increases both profits and lossesFixed payout structure independent of asset performance

Conclusion: Turbo Trading for turbo investments

Warrants are one of the best ways investors take low-level risks and turbo trading offers such risk by giving investors or traders the option to set a stop loss or knock out level which prevents the trade from rising above or below a set prediction. It is also a cost-effective method of trading and provides a high level of security through the trader forgoes some of his leverage but is rest assured of the safety of his capital.

FAQ – Most frequently asked Questions about Turbo Trading

What are Turbos?

Turbos are leveraged and secured products linked to shares and indices. They are the ideal tools for investors or traders to achieve gearing in spite of their challenges. Turbos are also known as warrants or certificates and are traded Over The Counter (OTC) directly between two parties.

Can I go long or short with Turbo?

Long / Short turbo trading allows investors to benefit from the market fluctuations. However, if a trade goes contrary to the set direction of the long or short trade, a trader will risk losing his entire investment capital. 
When the market is stable the turbo long or short is influenced by finance cost which would have a decrease or an increase in its price.

About the author

Percival Knight
Percival Knight is an experienced Binary Options trader for more than ten years. Mainly, he trades 60-second trades at a very high hit rate. My favorite strategies is by using candlesticks and fake-breakouts

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