Binary Options Strategy

binary options strategy

Several informative articles about Binary Options (also called Digital Options) have been posted at our blog . There you can find intermediate to advanced strategies for trading Binary Options. However, if you are new to Binary Options and want to learn more binary options strategies, this is post for you.

So what are Binary Options? Binary Options allow you to enter the trading world and to trade virtually any financial instrument (commodities, stocks, even Forex), all without any prior knowledge of trading. How is this possible? By greatly simplifying all aspects of trading, from opening an account, to funding your account by credit card, to execution and closing your positions. Nothing could be more simple. Binary Options are all about simplicity. The principle of trading Binary Options is based on choosing between 2 and only 2 possible outcomes. All other aspects of trading are taken care of for you. For example: if I choose to trade Google using Binary Options at www.tradesmarter.com, I simply need to choose whether Google’s price will end above or below the current price at the end of the hour. That’s it. As soon as I make that choice, all other aspects of trading are taken care of. Expiration of my Binary Option (closing my trade) at the end of the hour is automatic. If I chose correctly, lets say I decided that Google will end the hour above the current price and I was right, I will gain 70%. That’s unbelievable, considering that within literally minutes I can make hundreds of dollars, with my chances of succeeding being at least 50%. Certainly any knowledge of how Google behaves will allow me to increase my chances of success to greatly higher than 50%.

Many good binary options trading strategies have been posted at www.tradesmarter.com, however here is a nice and easy trading strategy to start you off. Have a look at Google’s trading history (you can use Yahoo Finance’s charts and open a daily chart of Google). When Google’s price crosses higher than yesterday’s high, often trading volume on Google will push the price higher. So a very simple way to start trading Binary Options is to place a ‘Call’ trade as Google’s price crosses yesterday’s high, indicating that you believe that the price at the end of the hour will end higher than the current price. If you were right at the end of the hour, your account will be automatically credited with 70% gain.

So as you can see from the example above, the best long term approach to trading Binary Options is to increase your chances of winning above the basic 50% chance. This can be generally achieved by using your preferred trading strategy, such as the one offered above, or other more advanced strategies at www.tradesmarter.com.