Binary Options On Stocks – A Trading Strategy
After analyzing the preferences of the bulk of binary traders on the issue of choosing an underlying asset to work with on the market, we can safely say that stock assets are often not perceived by players on the binary market as the primary tools of trading. Of course, company stocks are characterized in binary trading as having low contract liquidity as compared to the classic currency assets, and they do not allow for dynamic increases in trading profits.
However, stock assets have advantages as well – a high level of predictability of price movement, and a wide range of stable quote trend movements. This allows you to use this format of financial market asset as a tool for risk diversification and to create the optimal profitability level of your investment package. Against this backdrop, we offer a binary options trading strategy (what is it ?) on stocks, which is characterized by the maximum level of effectiveness, efficiency in binary trading, and versatility.
Trading strategy on stocks – technical requirements
To determine trends in corporate stock price movement, we will use the fundamental analysis principle of news trading – a pattern of the influence of statistical publications of the shares of public companies on the value of securities. This will require the following: an informational resource where you have access to the necessary information, as well as a broker with a wide range of underlying assets of this type. As a brokerage platform, we recommend using the terminal developed by Binomo, where, in addition to access to more than 30 assets of the stock market, you’ll find the complete list of technical and trading services to work effectively. They offer the most favorable conditions for investing in binary trading on the binary market – the minimum account for options trading at 10 dollars, the amount of an initial value option is 1 dollar.
In terms of choosing an informational service, we recommend the https://www.investing.com/ resource, where you are offered, in a convenient and quick manner, announcements and publications of statistics on the majority of global corporations on the global financial market.
News trading on stocks – practical techniques
So, for binary options trading on stocks you must first determine the most profitable asset to trade at that given time. To do this, use an informational service where you can look at the news announcements to determine the next release of data from a particular company. Based on this, select on the Binomo platform the asset to trade and wait for the release of those statistics.
To demonstrate, we’ll take the stock from Intel. This corporation’s annual report publication shows stable dynamics of profit growth:
Upon the release of the report, the market for the company’s stock naturally reacted with a rise in the cost of securities. When using the time of publication of the report and analysis of these indicators, it is necessary to register a bet UP on the underlying asset of Intel shares on the Binomo binary trading terminal:
It is recommended to use binary options bets with long-term periods of expiration – from 4 hours to a day, as well as contracts with a sufficiently high level of trading risk – up to 10%. In this way, you can achieve the highest possible trading results on the binary market.
News trading on stocks is the safest mode of profiting from binary trading since it uses the most stable pattern of market reaction to economic data.
- The strategy of binary trading on stocks is based on the principle of registering bets upon the release of company statistics. The rules for registering binary options are simple – good data moves asset prices UP, bad – DOWN
- For trading we use options with expiry periods from 4 hours to a day
- The maximum risk level for binary options trading in this mode is 10%
- This approach to profiting is recommended as part of the trader’s investment portfolio – this format of use of the system maximizes the overall trading performance and reduces the level of losses on trading positions on other underlying assets
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