Binary trading is performed by making a guess about the position of a share's value at a certain time on a certain day. This type of trading is also called the prediction trading and it offers easier ways to make money. There are some strategies, which can be employed in binary options trading to get the most out it. Some of these strategies include the Straddle, the Reversal, the Hedge and the 60 seconds strategy amongst many others. In this Yee Kok Siong discusses some binary options strategies in detail.
The Straddle
The Straddle is one of the most efficient and reliable approach to trade binary options. This strategy entails the use of both the put option as well as the call option. Remember, a trader uses the call option when he thinks that the value of the share will rise above a certain value. Conversely, he uses the put option if he thinks that the value of the share will fall below a certain value. In this binary options strategy, the trader places the call option at the value, which he thinks is the lowest possible. Similarly, he places the put option on the value which he thinks is the highest possible. In this way, both the options are trapped in between the two extreme values and the chances of a loss are decreased to the minimum level. Most binary traders use this strategy because it is one of the safest.
The Hedge
The Hedge is one of the most cleverly designed binary options strategies. This strategy is used to guard the profits made by the traders in case the market becomes unpredictable. In this strategy, a trader buys two opposite options regarding the same share. In this way, one of the options bought by the trader gets him money, whatsoever the value of the share is. This is a very adept binary strategy and can be used for protecting the money with almost 100 percent efficiency. 'The Reversal' is another smartly designed binary options strategy.
The Reversal
Every trader knows that when the market moves towards a particular trend suddenly, it is always expected to rebound in the opposite direction. This binary trading strategy uses this basic principle. If the value of a certain share highly increases, the trader can always use this strategy to put, and see the outcome in his favor.
'The 60 seconds strategy' is another frequently used binary options strategy. In this strategy, the trader makes his decision on the share value for a very short time span due to which there is very little time for the value to change. As a result, there is a huge chance of the result coming in the favor of the trader.
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