Your investment strategy for binary options is critical to the overall success of your business. Just as different trading, binary options strategy is also true of all traders have to master a dynamic art. In order to obtain a minimum financial risk, achieve maximum business flexibility and simplify all stages of the trade, we are following up some trading strategies, traders often applied today gathered. Learn more about different strategies in webtradingview.com
Having a better control of your trading binary options is essential to your understanding about the behavior of financial markets.
Hedging binary / connection strategy
Use Hedging / Straddle strategy is to trade binary options simultaneously in a property comprised in the opposite direction. This strategy is based on the assumption that “what goes up, must come down”, and it works as follows:
Select your general direction: Decide if you want to invest in a “call” or a “put” option.
Select your assets and investments according to your general direction has already been decided upon.
The climax of business strategy. When the price of the underlying financial asset of our progress according to our forecasts assume, you make an investment opposite.
Despite the positive direction of trade has taken place, traders should be aware that the potential threat of a sudden change to the overall asset constantly lurking transactions. Acceptable solution here would be opposed to investments.
If in Step 1 to your total lead you to invest in an option “Call”, in stage 3 takes you on a “put” option will invest. As a result, you now trade both “call” and “put” option, the risk of loss in both options, and to maximize the chances to get one of them to minimize.
In other words, hedging binary trading strategy will ensure you end up “in the money” – their risk management in the best shape it.
Hedging / connection scenario described strategy
Typically, if you have $ 200 to invest in options USD / JPY, as shown in the table above, and return on assets is 85%, you your $ 200, or lose Alternatively, if you have the strategy the above-mentioned implementation, if the trade ends up “money”, you get $ 170 even if an option expires “in the money”.
Use strategy to trade Binary get different results, your connection spring. If all conditions are correct, the price of its predicted path and you are “in the money”, you can use this investment to a whole new level by investing in front of the “call” option.
In general, there are two possible outcomes to this particular scenario:
If the market price rises or falls over a considerable price of “put” or “call” option at the end of the trade ends “money” to an option and “money” for options other. Hence, you lost $ 170 and $ 200, leaving you with a loss of $ 30.
If the market price of a considerable price of “call” and “put” options remain, resulting in the increase of $ 340.
Binary reform strategy
At the beginning and end hour away, assets tend to the unexpected wave (both up and down). The waves before, during and after important announcements the market occurs and exactly what you need to in order to reform binary trading strategy. The principle of this strategy is founded on law reform.
Now that you know how the reform will affect the market price of an asset, it is possible to leverage it. Using support and resistance lines, charts, technical analysis and trend line that appears, you can identify the price gap. Reform strategy asks you to identify the gaps and then run a binary option trade in the opposite direction.