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.

Post comment

Related debate

  • 1 week
  • 1 month
  • 1 Year
12 Sep
 
Man har forbarmet sig over mig - set at jeg kan opføre mig, som man bør   når uberettiget trend- ell..
63
15 Sep
VWS
  Her er lidt at tænke over for en enhver Vestas aktionær!   Den 6. nov. 2012 var der valgdag i USA ..
36
11 Sep
FING-B
EN SORT SORT DAG !!!!!   Dette er nok det værste jeg nogensinde har oplevet som aktieejer.   Først, ..
36
14 Sep
DLH
Den 105 år gamle historie om den tidligere storhandler af tropisk træ, Dalhoff, Larsen og Horneman, ..
23
12 Sep
 
Uha, nu trænger alpehue igen igen til opmærksomhed. Magen til barnagtig midaldrende selvudnævnt såka..
18
11 Sep
BIOPOR
  I fredags skete der noget interessant i US.  Astute Medicial fik godkendt deres NephroCheck (NC)af..
17
14 Sep
DLH
Udemærket opdatering på casen, Stockwatch. Et par kommentarer dog;   De laver et negativt EBIT på c..
13
11 Sep
FING-B
mine tanker og største respekt går til xo33, som det lykkedes plattenslager-debatørerne at få fjerne..
13
10 Sep
FING-B
Nu må alle kraknisserne lige klappe hesten. Det kan ikke være Fing's ansvar at en eller anden person..
13
15 Sep
FING-B
Så stop dog for pokker med alt det sædvanlige fnidder fnadder og forstå at dette debatforum stensikk..
11

Tech Companies Send Criticism Along With NSA-Related Data -- Update

04/02/2014 00:06:00
By Danny Yadron Technology companies including Google Inc. and Microsoft Corp. released new figures on the amount of data requests they received from U.S. ..

U.S. Hot Stocks: Hot Stocks to Watch

03/02/2014 14:07:00
Among the companies with shares expected to actively trade in Monday's session is Herbalife Ltd. (HLF). Herbalife Ltd. (HLF) raised its fourth-quarter outl..

Pfizer Study Meets Primary Endpoints

03/02/2014 13:05:00
Pfizer Inc. (PFE) said Monday that a Phase 2 trial of its advanced breast cancer treatment met its primary endpoint. Pfizer said a study comparing the effec..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
Press release - Orange to launch a voluntary offer to buy the Spanish operator Jazztel
2
Orange to launch a voluntary offer to buy the Spanish operator Jazztel
3
LUCARA AWARDED TWO PRECIOUS STONE PROSPECTING LICENCES IN ORAPA DISTRICT
4
Così, Inc : Regains Compliance with Nasdaq Listing Requirements
5
Ethan Allen Interiors at Telsey Advisory Group 5th Annual Fall Consumer Conference
Euroinvestor around the globe: Euroinvestor.dk | Euroinvestor.se | Euroinvestor.no | Euroinvestor.fr | Forexinvestor.com| Wisselkoersen.nl | Valuta.se | Valutaveksel.no | Divisas.es | Valute.it
Copyright Euroinvestor A/S 2014   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.
 
16 September 2014 16:26:56
(UTC) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20140915.2 - EUROWEB7 - 2014-09-16 17:26:56 - 2014-09-16 16:26:56 - 1000 - Website: OKAY