Binary Options Strategy

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Binary options strategy

Binary options are very similar to forex trading or stock trading in the fact that you must determine the
direction the market will go in order to make money. However, there are some clear differences
between normal speculation and binary options speculation , and those differences can result in special
strategies designed to maximize your profits in the binary options market.

Tips for normal transactions

To detect the direction in which the market will move, it is essential to analyze charts and past
movements. This is called technical analysis and is based on the assumption that the market moves
according to typical patterns. Analyze the asset's chart and try to glimpse the correct direction of future
movements.

A good strategy to win with binary options is to buy a call option after a big market drop or a put
option after a big market rise. The market tends to correct a bit after big moves, so if the asset's value
has gone too high in a short period of time, it's likely to go down a bit, and you can take advantage by
buying a Put Option. ).

Strategy for binary options

There is a very popular strategy among binary options speculators, called "Hedging". This strategy is
based on the idea of hedging your positions if you got off to a good start. The easiest way to explain
this strategy is with an example that explains how it works:

Suppose that at 12:00 you buy a "Call" option with the value of $1,000 in EUR/USD at a rate of
1.3500 with the term at the end of the day (in 12 hours). The option payment is 170% and the return is
15%. EUR/USD price reaches as high as 1.3570 at 17:00.

Now is the time to buy a put option on the same asset, with the same value and term. This means that
you are charged for the current option.

In this situation there are three possibilities for the outcome at the end of the day:

1) EUR/USD closes below 1.3500 -> first option is a loser, second option is a winner -> total payout is
$1.850 resulting in a net loss of $150

2) EUR/USD closes between 1.3500 and 1.3570 -> first option is winner, second option is winner ->
total payout is $3,400 resulting in a net profit of $1,400

3) EUR/USD closes above 1.3570 -> first option is winner, second option is loser -> total payout is
$1.850 resulting in a net loss of $150

Using this hedging strategy you limit your potential loss to just $150 (in the example above), while
you have a potential profit of $1,400 (almost 10 times the potential loss).

Touch Options Strategy

Contact options are special options where you win if the market reaches a certain level before the
option term. These types of options have very high payments that can reach up to 350%. Binary
options brokers such as Option Bit or Start Options offer these types of options.

To exploit this type of options you have to trade before the big market events with an intelligent
strategy. I will explain how to do it in a very simple example.

Suppose there is half an hour before the NFP (Non Farm Payrolls) announcement. The price of
EUR/USD is 1.3500. A 60-minute contact option requires reaching a value of 1.3580 in the next hour
to be a winner and has a payout of 300%. The "Touch Down" option with the same term requires
reaching a value of 1.3420 in the next hour and has the same payout.

You know that after 30 minutes, the market will move wildly in one direction, according to the press
release. What you don't know is the direction where it is moving, making this information useless for
the currency transaction. However, using binary options you can take advantage of this information.
You will be purchasing two options: a "Touch Down" option and a "Touch Up" option worth $1,000
each.

After the press release the market will move at least 100 pips up or down, and this means that one of
your contact options will be a winner. A 300% payout will net you $3,000, with an investment of
$2,000 resulting in a net profit of $1,000.

The strategies presented on this page are just some of the tactics that can be applied to binary options.
This incredible way of trading makes trading much easier for you, so you can benefit from market
movements and make a substantial income.
Do you want more strategies? Read the Bollinger Band strategy .
Bollinger Band Strategy for Binary Options
In this article I will focus on providing you with advice, and one of the main ones is that you should
learn to trade binary options .

Without a doubt, the “Bollinger Band strategy” is one of the most recommended. This type of
strategy is used by the signs that indicate the time to buy and/or sell, regarding the type of options
that go up or down.

Origin of the Bollinger Band


The precursor of this system is John Bollinger, who was born in Montpelier, Vermont in the United
States in 1950, by profession a financial analyst, and created the bands that bear his last name in the
1980s. John himself baptized her during a journalistic interview, and it has remained that way for all
these years.

Basically the Bollinger band is:


• A technical return or reversal guide, which is used to keep the operator properly oriented, at the
moment when the market has expanded and therefore the risk of sudden decrease arises. Therefore,
there are various technical guides for tracking.

• It should be noted that it is a statistical measure that does not only focus on a specific “moving
average”, because it usually applies 2 deviations and fixed models, which establish a channel on “the
moving average”; Therefore, a percentage of 95% will fall those that were carried out within a period
of 20 previous days.

• The “moving average” that can generate more dividends translated into profits is the one that occurs
during the 20-day moving average. For which, according to this financial tool, “the moving average”
and its standard paths must be individualized so that it is unsurpassed.

• The band can be applied on various moving average components as well as standard; The experts
explain that if the moving average and its standard deviation are wider, then the number of responses
decreases, resulting in a reliable alternative.

• The expert operator of these bands should already know how to interpret the appropriate distance
for their performance to be the best in binary options. The use of hourly charts is common, and you
can see how they come to coincide in percentages with that of other “market makers” (brokers).
Those who rely on the use of a time tabulation in hours, when making their binary options.

Important to take into account:

An operator has the ability to speculate that costs or prices will remain static without decreasing, or
on the other hand, say that they will only reach a certain range for an approximate period of time.
Analyzing binary options
Binary options are one of the very easy financial means to analyze and predict. It is valid that the person
who wants to invest may have reservations regarding this system of earning or obtaining short-term
profits.

In the commercial world, it is typical to believe that with a lot of motivation, getting up early and going to
bed late and working hard, they will be able to live comfortably off their profits in a few years, however,
practice says the opposite. The businesses that are currently done are taking longer every day to reflect
profits in a short time, in truth they require years of great sacrifice and limitations to position themselves.

But with binary options, it is usually a matter of hours after investing, you can earn more than 100% of
what you invested, as free profit. With this system, you will not need to work outside the home, nor need
to convince your clients to purchase your services or products, much less exposing your physical integrity
on the street.

So let's go back to analyzing binary options. This system allows the investor to decide what to invest in
and can previously analyze some variables, to later make the purchase. In other words, the investor by
then must already know how to identify the assets that present clear data of being good profit alternatives.

If you, as an investor, notice that there are assets that tend to have unstable behavior or without a coherent
established direction, it is not ideal for you to invest. Therefore, binary options allow you to know exactly
the price that an asset will have, it can be increasing or decreasing, allowing you to decide what is best for
you.

Steps to analyze binary options:


1 - Decide if the asset has an apparent reason for it to be moved from one place to another.

2 - Assets without motives or pattern of behavior, that move in directions without bases, are not useful for
trading with them. Nor those that only behave statically and without a pattern of change.

I give you an example:

We have two currencies, and one of them corresponds to a certain country, but its credit rating at this time
has been devalued, so it can possibly reflect significant movements, causing its extreme weakening, but
little by little it returns to a favorable direction . This type of event allows the use of some binary option.

What would happen with two currencies or currencies of certain countries that nothing happens, nor
experience outstanding changes, and if it were to occur, then it can only be part of a formula of chance.

Returning to our analysis, neutral binary options can give us a more accurate assessment, because the
behaviors that arise for certain directions can be very easy to know. Since the factors of events do not
affect reactions from other directions. An example of this may be the case of gold, in the event that an
important mine collapses, but has a large sale, and is the main supplier, it is obvious that its price will
increase. Because its presence in the market will be smaller and therefore less available.
Identify the different types of binary options
Now is the time for you to know the types of binary options , since most experts may explain binary
options as a single entity, and in practice this is not the case, there are several binary options.

Identify the top five:


a) Asset or nothing: All or nothing.

b) One touch: With a single contact.

c) No touch: Without contact.

d) Double one touch: double in a single contact.

e) Double no touch: double no contact

All or nothing - I highlight that the “Asset or nothing” type of option is the most common option used by
some platforms of this type of commerce or markets. For being the most recognized. Because in this
option a certain price is applied to purchase the asset. Subsequently, a contract called “call” (purchase) or
a “put” (sale) contract is acquired, this according to what the investor predicts about whether the asset
will be above or below its current price, in case If you don't get it right, you may not retain your
investment, but some platforms allow you to refund 15% to 10% of that investment so that it doesn't end
up at zero.

In this option the profits are driven by the cost of the asset, and not an arbitrary investment, so the
investor can understand that it is a purchase for the asset and not a contract, but ultimately it is just an
interpretation of semantics.

One touch - In the “one touch” option, its functionality is different from what I have previously
explained. “One touch” expires or concludes the contract when the price or value of the asset reaches a
certain value previously established. Here the investor's decision comes into play, whether or not he
wants the asset to reach the established value within the period that the contract lasts.

No touch - With respect to the “no touch” binary option, in this modality, the investment follows a
reverse pattern. Because instead of the contract becoming valid when the asset reaches a certain level, the
respective contract may be cashed by the investor when the asset remained unchanged and never reached
the proposed level.

Double one touch - In the “double one touch” option, in this modality, there is not a single pre-established
level but there are two, because then the asset has to reach two previously established values, and in this
way the contract will be in force .

Double no touch - And in “double no touch”, the binary option will stand out because it must avoid
reaching two previously established values for it to take effect. If the investor achieves this, he will
obviously win.

As you have read, it is very simple to do, it is just a matter of learning to identify what suits you best and
with your experience, I do not doubt that in a short time you will be among the best experts in managing
The importance of demo accounts in binary
options
The vast majority of binary options brokers offer their users the possibility of creating a demo account.
The idea of a demo account is that new investors can experiment a little and enter the great world of
investments, learn and be clear about how to invest with binary options .

With a binary options demo account, the user will learn how their binary options broker works without
putting their invested money at risk and making mistakes due to ignorance of the broker as such. When a
binary options demo account is opened, the user can also try different brokers, learn about their platforms
and decide which of them can be most practical and effective to achieve better results with investments.

It could be said that the investment platforms that brokers offer to their users are quite similar to each
other, but having the opportunity to try them all without the risk of generating losses is a great advantage
for new investors. In this way, the investor will be able to know each of the services that will be available
in the future.

By trading with a binary options demo account, the person can improve their knowledge and minimize
the risk of loss, thus achieving much safer investments. However, trading with a binary options demo
account can be a risk factor for the future. Many people can get used to trading with a binary options
demo account, and by not having a risk of loss in the investment, acquire a compulsive impulse when
investing.

So, trading with a binary options demo account can be a very good way to learn and understand how
binary options work, but people should not get used to always expecting a positive result or having
complete confidence in making an investment. successful. These habits can be easily acquired when you
spend a lot of time trading with a demo account.

Many brokers recommend their beginner investors use a binary options demo account to simulate trading
a possible real account. This may make sense when it comes to a new market.

Some of the main advantages of trading with a binary options demo account are:

1) Enter the market with a demo account that has real data, but with virtual money.

2) In a demo account, profits and losses are virtual. This allows the investor to gain experience without
losing any capital.

3) With binary options demo accounts, it is possible to create or improve strategies effectively and
without putting money at risk at any time.

4) Test and learn about all the operating tools that the broker has.

Trade forex with binary options


The way binary options forex are traded is based on the difference or pair between two different types of
currencies. In this way, the binary options platform will show a base value with which the investor can
make a decision if at the time of closing the option, the pair between the two currencies is above or below
Binary options in Spain
Beyond the financial situation that Spain currently has, this country is a very good scenario to operate
with binary options since the investor can obtain a benefit from the decreases and increases that asset
prices may have. Another advantage of binary options in Spain is that the percentage of variation that a
certain cost of an asset may have will not affect profits. It must be taken into account that with binary
options, a small investment can have a profit return of up to 70%.

Although these advantages seem quite striking, the truth is that you have to be careful with binary
options, although with binary options in Spain you can make a profit regardless of whether prices are
rising or falling. If the investor manages to have adequate training in binary options, he will surely be able
to obtain very good profits thanks to market price fluctuations.

It must be remembered that with binary options you can predict whether an asset in the future will have a
higher or lower price than the current one. When the prediction is made correctly, profits can be obtained
without the need to take into account the percentage of the variation in prices that said asset may have. It
should be emphasized that operating with binary options in Spain can be a very good idea, but the
operator must have great training, have good management of the signals for binary operations and, above
all, not make any of the decisions. hurried way.

The truth is that anyone who wants to be part of the world of financial investments can do binary options
operations in Spain, but the ideal is to have prior knowledge to be able to have greater discretion when
making investments. There are some brokers that have the option of creating a demo account that allows
future investors to learn and practice everything necessary to successfully enter the world of investments.

Remember that binary options in Spain can also be known as “digital options”. The Above / Below
Options are the most commonly used options, not only in Spain, but in almost all countries in the world.

Signals for binary options


For a long time in other markets there have been signals, such as in the currency market. These are known
as forex signals. The signals that are now available in the field of binary options are growing at an
alarming rate. You will be surprised at how many binary options signal providers are popping up all over
the web. The question is how good are these signals?

Signals for binary options are important, but if you are a beginner, then you should focus on learning the
key terms about binary options. The fact is that if you are an ambitious trader, you can start integrating
binary options signals into your business. Please note that this must be done consistently to obtain
maximum returns.

If you already have a little experience, signals for binary options are a must. Many traders who use digital
options use binary options signals to their advantage, and the truth is that by using them you can see an
increase in profits each trading day. You should keep in mind that you also need to do research on the
markets. Signals for binary options are not a brain, but they are a great tool. This means that if you use the
signals for binary options with your own knowledge, this will pay off over time.

If you are an advanced or professional digital trader, then it really is your choice if you want to integrate
signals for binary options into your trading experience. When it comes to binary options, some
professional traders recommend using signals, while others do not. This means that you have to find out
for yourself if using the signs can be beneficial for your own case. If you carefully do research on binary
options signals, you may find that there are signals in the market that you can buy, and they will make
options trading simple.

Considering that online options are young, the signals for binary options have not reached their full
potential. Furthermore, traders themselves do not realize how much using such signals can add to their
trading experience. This is unlike other types of online trading, where traders already know the potential
that trading signals offer. Therefore, if you are starting to trade binary options, there are plenty of exciting
features that are waiting for you. All you have to do is start working with a binary trading broker

Comments and articles that are written by leading market analysts, who understand the need for a reliable
website where all types of traders can meet and learn about the latest innovations regarding signals for
binary options. There is a site called binaryoptionssignals.com whose policy is to provide, in an
independent, but reliable way, the latest news and features of the best platforms. Definitely
binaryoptionssignals.com is the best place to learn everything about binary options signals.

The best signal service for binary options is: www.binaryoptionssignals.com

Advantages of binary options


Binary options are an attractive trading concept in the financial world. In the business world, binary options
appear as a safe and adaptable alternative even for those newer to the investment business. For many people, the
main advantage that binary options have is their potential profitability. Below, we present some of the advantages
of binary options.

Risk Management: Traders know in advance their amount of possible loss or profit. The risk is lower compared to
more traditional trading, as binary options offer large potential profits with minimal loss. Pulse markets offer
traders an additional advantage, and that is to provide a protection rate of 15%, which means that a trader cannot
lose more than 85% of their investment with binary options.

Simplicity: This type of trading provides a great way for inexperienced traders to get into the binary options
business . Traditionally, market trading has been done by people with deep knowledge of finances and market
changes. Conventional trading involves making or losing money on investments based on the amount of increase
or decrease in the price of assets. In this new and intuitive type of investing, traders are able to predict the
direction of the market. Binary options also have a much shorter lifespan than futures or stock trading. Investors
make predictions about the direction of the market within a day, and sometimes within an hour.

Less regulations: The regulations for this type of operations are less strict than other conventional forms of
commerce. Binary options are available to anyone with Internet access. If companies encounter regulation that
may hinder business relationships, they can easily move and look for a location with less regulation.

Range of options: Within binary options, a wide range of different products are offered for trading financial
instruments. There are currently a limited number of trading options within binary options, but as time goes on
and this type of trading becomes more mainstream, trading options are expected to increase.

No Trading Commission: In a conventional business transaction you have to pay a commission for the investment,
while trading with binary options is absolutely free, and agents almost never charge a commission for operations,
although a few do. At this point, the choice of agent is extremely important.

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