Binary Options Trading Strategies

Binary options’ trading is popular due to its efficiency and profitability. It gains more and more supporters. However, just like with any other kind of trading, if you want to earn good money, you shouldn’t rely on your luck or something else. You need a good binary option strategy (but it is not worthy to spend your money on the so-called ‘win-win’ extra profitable binary options strategies offered on various sites), and a good reliable broker who will be your alliance partner. When choosing a broker, take a notice of the conditions offered by 24Option and TradeRush.

Do not risk your money, because thus you are likely to bear losses. Trading options is easy and profitable, if you stick to the following aspects:

All the operating strategies can be divided into fundamental and technical.

Binary options trading strategies

In case you know how to make a forecast, it is good, because it affects profitability of the trade; a working strategy can bring success even to a novice who cannot yet boast a great experience.

How to make the right choice of a binary options trading strategy in a wide variety? Every trader should be choosing the one that suits him best as the most comfortable and convenient one. All the operating strategies can be divided into fundamental and technical. If you prefer long-term trading, better choose fundamental; if your choice is short-term trade, this can skew the results. For the global currency market and for options trading only one strategy is appropriate – trading on the news. When using it, you have to consider the news affecting the changes in the value of an asset. For example, a large company has arranged staff reshuffle, and it leads to the change in stock prices.

Technical strategies comprise two types: the first is the indicator type, and the second one deals with price movements. To use these strategies one does not necessarily have to have fundamental knowledge. Many traders with experience in option trading concur that indicators are not always reliable, and it is not recommended to rely on them too much, because signals are often observed already during the movement.

Therefore, strategies taking into consideration the price movements are much more popular.

Types of binary options trading strategies

Of course, genius is simplicity, and this is true for binary options too. Usually the most effective is a basic and simple strategy designed for binary traders. You can use it at the start of trading in the right direction. If the market goes up when you have purchased an option, the profit is yours, but it is important to wait till the option will expire. This strategy can be used to reach high goals, if the risk is minimal.

Some of the popular binary strategies are:

It is important to understand that neither of strategies can be winning all the time in any kind of trade, so choose a system according to your personal preferences. However, just a strategy is not enough to be successful in trading. To choose a reliable alliance partner, refer to the “Best Binary Options Brokers” section and check the offers of the most popular binary trading companies.

Opteck and TopOption are among the market leaders, but your choice depends only on you. Carefully consider all the terms and proposals and only after that open an account with a broker. After having chosen an appropriate company, proceed to validating of the strategy efficiency. In case you follow your system carefully and precisely, trading success won’t keep away from you.

Related Columns

What is Short Selling?

The term Short Selling originated in the stock market. A few years back, a person loaned stocks from his broker in order to sell them, and attempted to make a profit. Today the term...

What is a Pip in Forex?

A pip, short for percentage in point or price interest point, is known to be the smallest numerical price move in the exchange market. When a price changes on the exchange it is generally referred to as a Pip/s...

What is Copy Trading

Copy trading enables traders, experienced and new alike, to take part in the financial markets, by having their trades executed by experienced and seasoned traders with proven track records. This form...

How to trade stocks

If you are unfamiliar with the stock market, then this trader's guide will assist you in understanding this market and how you can easily trade stocks online. The stock market it is a giant international...


What Is a Margin and Leverage

Margin is deemed as the deposit needed when a trader enters the market to keep positions open. It is not a transaction fee, rather it is a tiny piece obtained from trading accounts equity...

Trading Forward Contracts

This is what is provided by a forward contract designed to protect companies and individuals against possible risks associated with sharp fluctuations of national currencies. Forward contracts...

How to Trade Bitcoin CFDs in 4 Easy Steps

Bitcoin is the world's first digital currency and it is expanding in popularity worldwide. Now, traders can trade Bitcoin with AvaTrade as the ideal asset in CFD trades....

Huge Potential of FTSE Small Cap Index

Financial Times Stock Exchange (FTSE Small Cap) Index is an index of international small market capitalization companies. But before you get a hold of what this...


All You Need to Know about FTSE Futures

The FTSE is an acronym for the Financial Times and Stock Exchange index that represents the hundreds of top companies on the London Stock Exchange. Although...