Market demand strategies. Since the past year binary options have become widely available, the number of binary options trading strategies has also been increased. These strategies have been developed by the leading binary options brokers and individual investors. However, with the increase of brokerage speculations, the risk also grows. As a result, the need to develop strategies for trading binary options is increasing. The importance of understanding the different strategies in binary options trading is explained by the fact that the traders increased the interest in trading binary options.
The market demand strategies
Acquisition of Call-Option and Put-Option
One of the binary options trading strategies is to buy one type of option, Call or Put. The advantage of this strategy is its extreme simplicity. For example, you invest $ 500 in Put-option on the currency pair EUR / USD with an expiry of an hour. If the currency pair at the time of exercising the option declines in price, you will receive $ 850 in one brokerage company. Even if you bought the option that expired out-of-the-money (i.e, the price of the asset will rise relative to the purchase price of the option), you still get 15% of your investment back.
The following strategy at binary options trading is growing in popularity: when the traders, often in the midst of trade, realize that their forecast of the option is not justified, they buy an option in the opposite direction. For example, if you invested $ 100 in the Call-option on the NASDAQ with the expiry of the end of the day, the strike price of which was $ 11,800, and then a few hours later you see that changes in the market place are not in your favor, you can use one of the strategies of trading binary options – for example, buy Put-call option for the same cost ($ 100). Choosing this strategy at binary options trading, you will at least minimize your potential losses.
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One of the most popular strategies for binary options trading among experienced brokers is to duplicate the transaction. Suppose you have purchased a Put-option for $ 100 on the Dow Jones index at 10033. If the change is in your favor and the value of an asset falls below this level, then the purchase of another Put-option could be an attractive strategic decision. As a result, you can get a better return on your initial investment. Such strategies of trading binary options are usually used by those traders who are well oriented in the financial markets.
The strategy of market demand
One of the most effective, but quite a difficult trading strategies of binary options trading is market demand. The basic idea of this approach is to invest in a Call or Put option at the time of radical changes in the financial markets. For example, the news leaked out that the dollar will plummet – experienced traders of binary options are likely to buy a Put option for the currency pair USD / JPY. The reason for choosing this strategy of trading binary options is that the pair will decline. Thus, the broker has a good chance to get a high profit. Many traders of binary options received huge profits thanks to this strategy of binary options trading.
Accumulate experience
There is a countless number of binary options trading strategies that you can use. Our advice is the following: while choosing a particular strategy in binary options trading, remember that you are in charge. This means that you have to choose what suits you best and what is best for your style of doing business. Also bear in mind that the most successful traders use different binary options strategies of binary options trading at the same time. Therefore, the more experience you have in trading binary options, the better chances you have to trade successfully.
The market demand strategies
