Looking On The Bright Side of Options

How to Get Binary Options Right: Winning Strategies

Do you wish to make money with the right binary options strategy? When it comes to binary options, a number of trading assets exist, but the most effective strategy with minimal risks is to pick just one asset. It makes sense to concentrate on an asset you know best, as being consistent allows you to easily forecast the trend its value is taking.

Here are some binary options strategies that an experienced or new trader can rely on:

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With this approach, you keep an eye on the trend depicted by the asset in question, observing it as it rises, drops, and stays flat. For example, you may go for the “no touch” option when a flat trend line is observed and you’re prediction is that the asset price will rise.
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The Pinocchio Technique

If you expect that the asset price will dramatically drop or surge, use the Pinocchio approach. In case a fall is expected, go with “put,” and if a rise is anticipated, pick “call.”

The Straddle Technique

Work with the straddle strategy mostly when the market is volatile and just prior to the release of crucial news related to a certain asset, such a stock, or when expert projections tend to be afloat. This is a strategy that is respected by binary options traders on a global scale. It offers a trader the option of not having to pick the call and put option, but to have both options on a chosen asset.

The general concept is about using “put” if the value of an asset has gone up, but there’s a known likelihood that it will drop soon. Once the drop has occurred, exercise the “call” option on the asset, projecting that it’ll bounce back soon. You can rely on the straddle strategy when the market is up and down or a specific asset is unstable.

The Risk Reversal Concept

Globally, experienced binary options traders like to employ this strategy. The general goal of the concept is to lower the risks of trading and heighten the chances of good results and profit making. To execute this technique, place call and put options at the same time on a single asset. It is ideal for assets with volatile values.

Hedging

Hedging is also referred to as pairing and it’s executed to protect the trader or investor. The idea involves the simultaneous placement of puts and call options on an asset. No matter what direction the asset value goes, a successful outcome will be produced.

There are numerous binary options techniques that are known to reduce risks. Whether you’re experienced or new in binary options trading, the above strategies can help you protect your investment.