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Binary options strategies

Binary options trading today is one of the most profitable and fascinating occupations as long as certain rules are respected. Binary options represent such type of transactions which are estimated as expired or not expired. The executed options bring to the owner the fixed profit sum. The executed binary option means that the trader guess the price movement before option expiration.

Active participants of the market offer the following highly effective and profitable binary options trading strategies – Bollinger bands, Moving Averages, Straddle strategy, Collar strategy, Covered Call and Protective Put.

Bollinger bands represent a certain statistical figure which reflects the maximum congestion of transactions on determined price for the last 20 days for a concrete option. You can obtain success and profit using Bollinger bands, the main thing is to precisely choose a time-point when it is necessary to buy a binary option.

Moving averages strategy among others binary options strategies is rather simple and quite profitable. The technique essence is: the moment when the value of the sliding average is higher of 5 or lower than 20 – the trade should begin. If crossing got higher than 20, then it is necessary to buy options and if below, on the contrary, to sell.

Straddle strategy perfectly fits when exists a high probability of serious changes in binary options cost, but it isn't possible to calculate and predict the direction of these changes. In this case, binary options trading can practically relieve the investor or the trader of uncertainty – whether the investments will be successful or not. In a situation with options everything occurs very quickly, it is possible to sell the position just in the right time and to lose nothing. And then a new opportunity appears, to start the trade again.

The collar strategy assumes minimization of risk for the expired options payments by the method of counter option's sale. Each trader develops his own strategy in the general framework of Collar strategy. Collar direction allows to avoid big payments and receive small bonuses and commissions.

The covered call strategy gives the trader opportunity to sell binary options of call type with a serious increase in profits due to the favorable realization of investments. In this case, the trader can minimize the risk of portfolio investments. This strategy perfectly suits to skilled players in financial markets and to the beginning traders who aren't able to do the correct forecasts and may carry out the safest transactions to make a profit. Most often the trader sells options like Call to provide reliable protection to all investment portfolios against the decrease in trends and in order to receive a prize due to bonus payments after the sale of this option.

Choose wisely and good luck in binary options trading! 



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Number of comments: 2
  • Leo
    • #

    The collar strategy is a very interesting one, minimizing risks is the best option for any strategy.

  • Noahbean
    • #

    Using Bollinger bands and Moving Averages always helped me to identify the trend. I'm trying to learn working without any indicators, but right now I just can't imagine it.