binary options strategy

Introduction

Have you joined a binary options trading platform and wondering- what are the best binary options strategies that will put you in a position to make incredible profits every day? As binary options trading has become an increasingly growing trend worldwide, top binary options brokers and individual investors have assessed and identified a selection of binary options strategies that are the best methods a trader may use in order to excel in the binary options market. After applying these binary options strategies to your trading experience, you will discover unique strategic approaches that are guaranteed to position you among the most successful traders in the binary options industry who are reaping lucrative rewards.

Binary Options Strategies #1:
The Reversal

The most popular amongst the binary options strategies is called “the Reversal” strategy. This strategy is used when an investor observes that an asset suddenly moves in a specific direction, but detects that the asset is highly unlikely to stay at that peak and will move towards its original position; if not all of the way. Therefore, the investor will quickly buy a “Call” or “Put” Option depending on whether the price of the asset has risen abruptly or fallen abruptly.

Example: You decide to trade S&P Future and see that it has been consistent at 2,000 and then quickly jumps to 2,700 within a short period of time and then quickly jumps back to its low peak.  You will then decide to quickly purchase an option when it is close to its original point.

Binary Options Strategies #2:
The Straddle

While “the Straddle” may be associated as one of the more complex binary options strategies, this strategy is capable of yielding double, profitable returns for the investor.  This tactic is when a trader pairs both a “Call” and “Put” Option on the same asset.  Essentially, the investor straddles the asset at both a high and low point (between the two prices) so that this creates a nested position and ultimately a double success for the investor at the time of expiry.

Binary Options Strategies #3:
The Double Trade

Binary options strategies such as “the Double Trade” are commonly used by investors who have an advanced awareness of the financial markets. This strategy is used when an investor purchases an asset and subsequently, observes that the trade is proceeding in the investors favor. The investor will choose to purchase another option with the same asset.  Ultimately, this strategy will provide the investor with an increased profit on their original investment.

Example: You purchased a $100 “Put” Option of Nasdaq at 5,000. Before the expiry time, you notice that this trade is proceeding in your favor and trading below this level. Then you will purchase another “Put” Option.

Binary Options Strategies #4:
The Knock on Effect (aka Market Pull Strategy)

This is a favorite amongst the binary options strategies and a useful tactic that skilled traders apply to any asset. By following news headlines, the trader recognizes that a move in one asset has a “Knock on Effect” to another asset. More simply stated, the trader invests in either a “Call” or “Put” Option based on dramatic changes in the markets. Stock prices affect index prices. A country’s asset affects the price of commodities.

For example: Latest news reports announce that the value of the dollar is dropping. The trader will then purchase a “Put” Option of USD/EU.  The basic concept of this method compared to other binary options strategies is that trader perceives that this coupled currency will drop.

Conclusion

Keep in mind that the wonderful phenomenon of trading binary options is that it is simple and anyone may trade!  Nonetheless, mastering binary options strategies are easily achieved once you apply one or more methods that fit your trading style. The binary options strategies that one may use while investing are numerous and different strategies are fitting for different people when trading various assets.  This means you should select amongst the binary options strategies that work best for you and ultimately present you with profitable and worthwhile trading results.