Strategies Of Binary Options

The Binary options have been rapidly gaining popularity on the financial market. It is very simple to work with them: any newcomer can learn the options. However, the hitch with binary options is that when a trader will enter into transactions at random time, they will be closed the same ratio of profit and loss — 50% to 50%. But even this ratio would not be sufficient for a profitable trade. The average profitability of each transaction is up to 85%, but the loss is already 100%. Therefore, to get a profit, it is necessary that the number of completed profit transactions could have reached 65% and higher! A trading strategy is a kind of scenario of the trader’s action is to increase the number of positive deals at levels above 65%.

Strategies Of Binary Options

First, you need to define, what your trading strategy is.

The trading strategy is an algorithm of actions of a trader, which he uses, making a trade binary option in accordance to the market .

The essence of trading strategies is to use the system of rules based on automatic analysis tools (indicators), simple regularities of market movements (technical analysis) and fundamental indicators.

The technical analysis is the review of the price movement. It can be based on its own unique metrics, and technical indicators that generate signals on certain conditions on the charts of the assets for a profitable deal.

The trading strategy on the fundamental value depends on world events that affect the quotes of the asset.

For example, a strategy trading on the news, is based on data that’s published, it can be quarterly reports of companies, political news or speeches of heads of Central Banks.

The strategy of earnings on binary options

 

The strategy of earnings on binary options

Beside the most important trading strategies used by stock-market players with the aim of obtaining stable income and the analysis of the market situation on the futures market, there are many methods contributing to the significant increase in the efficiency of the applied trading methodologies, resulting in improved statistics for binary options trading. Typically these methods go together with a basic trade strategy.

 

The averaging method of trading positions

The method for increasing of trading efficiency is most often used for channel and trend trading strategies when making the inertial movements of the financial product quotes outside of the channel levels and trends. This method is very simple. According to the rules of trend trading methodologies, trading positions are opened at the moment of contact levels of support or resistance on a bounce from them. When the trade signal works, the private trader immediately enters into the transaction. But that also happens without any indication of quotation of trading of an asset breaks through a level. The method of averaging deals begins to operate in this moment.

How does it work?

During the inertia, beyond the level of the main trend it is important to take additional trading positions in the direction of the slope of the trend channel and the trend movement. As a result of this trading, we will receive income on a series of trading positions, there will be an increase in total income. This method for an increase trading efficiency can be combined with trading strategies that includes the oscillator indicators with the ability to accurately determine trend reversal and the end of the local corrections.

 

Hedging options

This method is used to receive the extra money in the options market and to reduce the financial risks.

What is method of hedging options?

This method improve trading efficiency is to implement additional trading positions in the opposite direction of the original transaction when the main trading position located in a zone of profitability. It is important to note, that after the execution of the transaction UP quotes of traded asset starts to rise, then a price reversal is issued to hedge the trading position. As a result, we will receive a profit or for one of the transactions, or both. In the first case, there is a compensation of losses for one of the transactions, in the second – you can receive the additional earnings.

 

Martingale on binary options

What is the working principle of the method of martingale with binary options? It is based on the system of doubling rates every time when you get a loss according to the transaction. The result of overlap is obtained before this loss, and there will be a small increase to the total size of the trading deposit. It is important to double the size of the trading lot before getting a profitable deal. Thus, the total trade statistics will always be profitable.

 

Best strategy for binary options

The best strategy for binary options depends on the personal qualities of the trader, his preferences, and choices of trade, the timing of expiration.

If you are impatient, it is more suitable for short-term (turbooptions), where you need to quickly analyze the market and make the decision.

Focused on thoughtful analysis and long-term work to deal with the options with a long expiration date.

In any case, you need to understand – a safe strategy doesn’t exist, to get profit without risk, no reward.

Thus, there is no perfect strategy for all, every trader over time gets the idea for the best trading strategy that he adheres to.

We can offer you the best, in our opinion, strategies for binary options to date:

 

Types of strategies on binary options

Strategy for binary options share on expiration dates, at the time of the expiration date of the option and the result is fixed on the signed contract.

Below, you can find links to informational articles on strategies for the most popular expiry times:

And also, for the most popular methods of creation of strategy: