Login with token
In a real life scenario, the token could be an access card to building, it could be the key to the lock to your house.
In order for you to retrieve a key card for your office or the key to your home, you first need to prove who you are, and that you in fact do have access to that token.
It could be something as simple as showing someone your ID or giving them a secret password. So imagine I need to get access to my office.
I go down to the security office, I show them my ID, and they give me this token, which lets me into the building. Now I have unrestricted access to do whatever I short term binary option inside the building, as login with token as I have my token with me.
If we think back on the insecure API, what we had to do in that case was that we had to provide our password for everything that we wanted to do. Imagine that every time we enter a door in our office, we have to give everyone sitting next to the door our password. Instead, what we do is that we retrieve the token, of course together with password, but we retrieve that from one person.
And then we can use this token wherever we want inside the building.