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Binary Options Learning Strategies PDF Print E-mail

Introduction

If you are a binary options trader, you must have wondered many times what sort of binary options strategies can help you earn good amount of money every day. Binary options trading has turned out to be one of the most favored instruments throughout the world.

 

Consequently, top binary options brokers and individual investors have evaluated and analyzed a host of binary options strategies in order to help their traders to have successful trading experiences. After trying out these binary options strategies, we are sure that you will come across the most suitable strategy and learn how to make the wise moves with it.

 

That will surely help you become one of the most successful traders in the binary options industry.


Binary Options Strategies #1:

The Reversal


The Reversal strategy is probably the most accepted strategy amongst traders. This strategy comes in handy when you see that an asset all of a sudden shifts in a specific direction, but at the same time, you notice that the asset is extremely unstable and most likely it will move towards its initial position.

 

Thus, you're going to purchase a “Call” or “Put” Option according to the movement of the price of the asset.

 

For instance, let's say you wish to trade S&P Future and notice that it's been stable at 2,000 and then suddenly leaps to 2,700, then comes back to its low peak without any indication. What you would do is to buy an option the minute you see that it is coming back to its original position.



Binary Options Strategies 2:

The Straddle


Even though this strategy called “the Straddle” may be considered as one of the more sophisticated binary options strategies, you may find it useful as this can bring traders some advantages such as double yielding and profitable returns.

 

This is useful when you pairs both a Call and Put Option on the same asset. Basically, this strategy will give traders the chance to earn double success as you can straddle the asset at both a high and low point, establishing a nested position.   



Binary Options Strategies 3:

The Double Trade


The Double Trade strategies are often favored by traders with the ability to stay alert to the events of the financial markets. This strategy can be exploited in a case you buy an asset and afterward, sees that the trade is progressing in a favorable direction.

 

You would want to buy another option with the same asset. Eventually, this strategy can help you earn a larger profits on your original investment.

 

Let's say you bought a $100 Put Option of NASDAQ at 4,000, you detect that this is going to be a winning trade and trade is being conducted below this level, then you will decide to buy another Put Option.


Binary Options Strategies 4:

The Knock on Effect


The Knock on Effect strategy is also known as Market Pull Strategy, and is a very  advantageous trade plan that is used by many experienced traders to any asset. If you are keeping track of news headlines, you will notice that a move in one asset holds a “Knock on Effect” to another asset.

 

In other words, depending on the abrupt changes in the markets, you will invest in either a Call or Put Option. Index prices are influenced by stock prices, and the commodities' price is influenced by a country’s asset. If you hear on the news that the value of the dollar is decreasing, you would buy a Put Option of USD/EU.

 

The basic characteristic of this method is based on the ability to predict correctly the movement of the markets.  


Conclusion

The Foremost attraction of the binary options trade is its simplicity which welcomes both experienced and new traders. Learning binary options strategies can be done quite easily after you utilize several methods that suit your trading style.

 

As you start learning about binary options trading, you will see that there are a number of different strategies for different type of investors trading a wide variety  of assets.

 

Meaning, you will be able to choose the most suitable binary options strategy for your trading, and it will surely help you become a trader making satisfactory amount of profit on every trade.

 

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