Binary Option Strategies What you should know

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Types of Binary Option Strategies

Binary options are a popular way to make money using financial instruments. This method is very different from traditional choices that have ever existed, liquidity, rewards, and the risks and payments. In addition, this way traders can more easily enter and be accessed anywhere and anytime. You should pay attention to the following strategies in order to successfully implement binary options.



Technical Analysis Strategy

Is a 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 options trading because as a trader, you don't need to investigate the company's financial statements. Among the tools used in technical analysis include Bollinger bands and Moving Average

Basic Option Strategy

This strategy is quite popular with binary options traders. This strategy is designed and worked by a trader to protect himself from the risk of a total loss 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 goes in a good direction, say upward, you place the call option. At the same time, you will place the put option on the same asset. For example, the GBP / USD currency pair will be at 1: 4000. You place a USD 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 so far is still relatively good. At this particular time, you buy a put option for the same asset at 1: 4015 which will expire in 15 minutes at a price of USD100. The payment is the same as the call option payment.

At the end of 30 minutes there will be two results:

Your 30 minute call option wins and 15 minutes your put option loses. You will get $ 185 from 70% winnings and 15% refund of the consolation of put options (the opposite can happen, put options win and call options lose).

Call and put options can end with you getting $ 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.

Fundamental Analysis Strategy
This strategy is related to the analysis of the overall behavior of a company's performance. As an investor or binary option trader, you must be able to understand the health of the company's balance sheet, income statement and cash flow statement before you consider buying a binary option.

Other factors that you should examine include employee satisfaction 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.

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Correlation-Integration Trading Strategy

There may be two stocks on the market that have a high correlation relationship. This may be because they are in the same industry and traded in the same market, so they are influenced by many factors in the same way. Given the high correlation between a pair of shares like that, you will find that every time there is a gap between them, it will immediately cover up with each other. The gap can be caused by the weakening of one stock compared to the other. Your main task here is to identify gaps.