13 August 2012 12:23

What Are Binary Trading Strategies And How To Manage Their Risks?

Binary _options _trading1

As a concept, Binary Options trading is fairly straight forward and simple. It is nothing but predicting whether an asset would rise or fall by the end of a time period. However, it is much easier to earn and maximize your profits if you are aware of the strategies that binary options brokersand experts use. The following are some binary trading strategies you must know about -

Straddle - Straddle, as a general strategy, means that you forecast different levels of price for an asset. The prediction could be that the price would rise above a certain point or that it will fall below a certain point. Because you have set a range, if the actual price is within the range anticipated by you, you would end up on the winning side. In binary options, you buy a call and a put with the same expiration date and strike price to create a straddle.

 Reversal - If your estimates show that the market might change direction, then you follow this strategy. It involves going in the opposite direction of what you have been following thus far.

 Knock On Effect - Some assets affect other assets when their price changes. They are complimentary assets whose prices follow a certain function in relation to each other. So, forecasting becomes difficult in this case because you have to ensure that your estimates take all these future effects into account.


The main purpose of all the binary option trading strategies is to manage your risk. The idea is not simply to reduce risk to a bare minimum but to create the right balance between risk and returns. You might be aware that risk and returns have a direct relationship. This means that your returns increase with your risk and hence, managing risk is important.
Never follow trends and rumors blindly but this doesn't mean that you should not know what is going on in the industry. Even if some rumors are untrue, they tend to have an effect on prices and you must be there to cash on the benefits.
You should always research well before you zero-in on an asset. Guesswork never works in trading, always back your guts with facts and figures and never gamble. This doesn't mean that you would never lose money. It simply means that the chances of losing money would be reduced. Binary Options trading requires utmost patience and determination and you would require these qualities to become successful.

Comments

#1 | Tuesday 18 Nov (17:47)
I am exploring this subject as part of a report I need to do on possible careers I might choose. Thank you for your post it has valuable information on this topic.
San Diego Real Estate
#2 | Tuesday 2 Dec (17:51)
This is a terrific article, and I would like more information if you have any. I am fascinated with this topic and your post has been one of the best I have read.
botox for headaches
#3 | Tuesday 2 Dec (17:56)
This article is well thought out and full of good information. Many Thanks for taking time to bring this together into one article.
Upland Chiropractor

Post comment

Related debate

  • 1 week
  • 1 month
  • 1 Year
15 Feb
 
En debat i forum i dag løb lidt af vejen, og moderator måtte slette rigtig mange indlæg ”fordi indlæ..
137
14 Feb
VWS
Nu har jeg haft lidt tid til at kigge på det nyligt offentliggjorte regnskab for 2016. Baseret på de..
82
14 Feb
FING-B
Investering er umiddelbart blevet til en vittighed. Før i tiden investerede man i et selskab, man tr..
26
18 Feb
OMXC25
Den rammer da noglenlunde godt.      http://finans.dk/live/opinion/ECE9365426/den-stoerste-trussel-m..
25
15 Feb
FING-B
erikanthon .... ANON ....   Nu er det da vist tiden, at du får et lødigt, ud fra den viden jeg har. ..
25
14 Feb
E:PROTCT
  Jeg har flere gange analyseret det norske forsikringsselskab, Protector, som er et yderst interess..
23
18 Feb
OMXC25
tonnio: Jeg er ikke i tvivl om, at et meget stort flertal af danskerne ville have stemt ja, til at v..
14
15 Feb
PNDORA
Tak for det svinske svar. Det gav mig muligheden for at se hvor jeg havde misforstået regnestykket. ..
14
17 Feb
 
omglol,   Hvis du er valueinvestor, er Maj Invests Kurt Karas spritnye: "Den rationelle investor" en..
13
14 Feb
ONXEO
Jeg ved godt, jeg lige har postet dette: Men jeg vil så gerne have lidt respons og jeg har faktisk b..
13

Form 8.5 (EPT/RI) - E2V Technologies plc

07/02/2017 07:47:25
FORM 8.5 (EPT/RI) PUBLIC DEALING DISCLOSURE BY AN EXEMPT PRINCIPAL TRADER WITH RECOGNISED INTERMEDIARY STATUS DEALING IN A CLIENT-SERVING CAPACITY ..

Majedie Asset Management Ltd : Form 8.3 - TESCO PLC

06/02/2017 15:31:59
FORM 8.3   PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECU..

Alliance Trust PLC : Transaction in Own Shares

06/02/2017 07:00:03
6 February 2017  Alliance Trust PLC TRANSACTION IN OWN SHARES  The Board of Alliance Trust PLC ("the Company") announces that on 3 February 2017 the Comp..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
JACC: Clinical Electrophysiology Manuscript Featuring BioSig's PURE EP System in Top Five Most Influential of 2016
2
JACC: Clinical Electrophysiology Manuscript Featuring BioSig’s PURE EP System in Top Five Most Influential of 2016
3
BIOHIT GROUP FINANCIAL STATEMENT RELEASE 2016
4
Thinfilm Completes Purchase of EAS Manufacturing Equipment for Roll-to-Roll Line
5
Impinj and STANLEY Healthcare Announce Partnership and Platform Integration

Buy and sell signals

  • Trend
  • Moneymachine

Copyright Euroinvestor A/S 2017   Disclaimer and Terms of Use
Quote information is delivered by Interactive Data.
Data is delayed 15-20 minutes according to the distribution agreements set by the different exchanges.
 
21 February 2017 00:35:13
(UTC+00:00) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20170217.2 - EUROWEB1 - 2017-02-21 01:35:13 - 2017-02-21 00:35:13 - 1000 - Website: OKAY