Binary options trading is done best with the correct software. As you may know, the main focus is whether you’re in the money or out of the money. However, you can still gain when you’re out of the money depending on which software you use. There are select options available from TorOption that will allow you to receive these small payouts.
Deciding what to trade
With binary options trading, you choose whether you want to trade currencies, stocks, or commodities. You can decide how long you want the trade to last by selecting an expiry time. The basics are if you believe the trade will go up, you can choose call. If you believe the trade will go down, choose put. If you’re looking to gain higher payouts, you can opt to trade over the long term. You can’t trade this option any sooner than within three days.
Trading for the long term
Long term trades operate the same way and you’ll just need to select an expiry date and whether it will expire in the money or out of the money. There is also 60 second trading that automatically expires within that time frame. The concept is the same. You can get up to 70% return using this option. If you’re using the TorOption platform, you can see the amount that your return will be as well as what your loss might be. With One Touch Trading, the asset reaches the target price or drops below it and you receive your payout. Unlike other options, One Touch Trading doesn’t make you wait for the expiry time and you can receive up to a 500% payout.
What’s the best strategy to use?
Pairs options also work differently by getting you to decide whether one asset will outperform another asset. Pair assets will always be in the same industry. For example, technology, healthcare, or currency. Wouldn’t be so much easier to trade if you could follow a successful portfolio? Thankfully, this option is available as TradeFollow. By using TradeFollow you can create a copy of a winning portfolio. Of course, you’re also able to define your investment limitation per trade and total limitation.
Getting to the basics
You may want to trade what is familiar, many people choose currency. Look into the dynamics of the asset prior to trading. Never completely invest all of your capital into one asset. Look at the trend line of the asset over time and determine if it is rising or falling. This basic bull/bear strategy will give you some gains. Another strategy called the Pinocchio strategy is utilized when the price of an asset is expected to increase or decrease dramatically.
Straddling your trade
The straddle strategy is just what it sounds like and allows you to get the best of both worlds, you’ll both call and put. Put when the asset increases but you believe it’s going to drop. Wait until the decline is actually happening and then call when you expect the price to rise again. If the asset is particularly volatile, this is a great strategy to use.
Reducing the risk of your trade
Risk reversal is yet another strategy that utilizes both the call and put option. To do this, you’ll place both a call and put at the same time on one particular asset. In this way, whether the price moves up or down, you still get a positive outcome.
Studying your asset
You can’t go wrong with good old fashioned fundamental analysis. You can go back and conduct a review of all the financial assets of a company. This will better help you determine how a company may respond to certain economic and financial changes.
There are many different strategies you can utilize when it comes to increasing the success of your trading. There are many options available and you may be able to better decide which strategy works for you by utilizing webinars and video tutorials to further educate yourself.