Friday, October 5, 2018

Best Success Strategies for Binary Options Trading

5 Most Popular Strategies in Binary Options Trading

The popular strategy that many binary option traders currently do is as follows:

1 - Fundamental Analysis Strategy

This strategy relates to the analysis of the overall behavior of a company's performance. As an investor or trader of binary options, you must be able to understand the health of the company's balance sheet, income statement and the company's cash flow statement before you consider buying a binary option.Other factors that you must check include the satisfaction of employees and business partners. In short, this strategy tries to see the overall picture of the business they want to invest in their shares and sometimes the industry as a whole.

2 - Technical Analysis Strategy

This is a fairly popular strategy in binary options trading. This is mainly related to the study of the past, using different parameters such as graphs to predict the future price of an asset. This method is not related to getting the intrinsic value of an asset but is very useful in option trading because as a trader, you do not need to investigate the company's financial statements. Among the tools used in technical analysis include Bollinger bands and Moving Average.

3 - Basic Option Strategy

This strategy is quite popular among binary options traders. This strategy was designed and worked by a trader to keep himself from the risk of total losses on their investment. You will choose the main asset or currency that you are interested in and then if the market movement of the strike price leads in the right direction, say upwards, you place the call option (buy). At the same time, you will place a put option on the same asset.Let's use an example:GBP / USD currency options will be at 1: 4000. You place a $ 100 call option that will expire in 30 minutes. The payment is 70% if you win and 15% if you lose. In the first 15 minutes, assets are at 1: 4015 which is still quite good so far. At this particular time, you buy the put option for the same asset at 1: 4015 which ends in 15 minutes at a price of $ 100. The payment is the same as the call option payment.At the end of 30 minutes there will be two results:The choice of the call option 30 minutes you win and 15 minutes your put option loses. You will get $ 185 from 70% winnings and refund 15% of the put option (the opposite can happen, put option wins and call option loss).Call and put options can end with $ 340 ($ 170 + $ 170). Because it is almost impossible to lose both options, the general risk of loss in this strategy is only $ 15 to win $ 140.

4 - Algorithms and signals

There are applications that are sold and are very good at analyzing market data. You might feel right to invest in such an application. This application is installed on your computer and collects the data you want and then analyzes it to produce the best results. Technical and fundamental analysis data are used here.The computer will then choose the right trading session. You can even continue and design applications according to your financial plan. But you need to periodically update the raw data taken by the application through detailed analysis.

5 - Correlation-integration Trading Strategy

There may be two stocks on the market that have a high correlation. This may be because they are in the same industry and are traded in the same market, so that they are influenced by many factors in the same way. Given the high correlation between such a pair of stocks, you will find that whenever there is a gap between them, it will immediately cover up. That gap can be caused by weakening one share compared to the other. The main task here is to identify the gap.After identifying loopholes, you must buy through call options for weak stocks or put options for assets if a higher stock price will definitely go down. Finally, both assets will get to the correlation path and that must be the 'exit point' of your trading strategy.


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