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Binary options of the Border. Where and how to trade these options.
At the disposal of traders who trade binary options there are several types of tools. One of the ways to make money is binary options trading the Boundary. This tool is not provided by all brokers so for example we'll use the terminal 24option.
Next will be described the essence of the tool Border and the main points that should pay attention when trading.
So, the 24option broker has several types of binary options that you can use. On the left side of terminal select "Limit" then it is possible to determine an asset, for example, to stop on the EUR/USD currency pair.
Once You click on the selected asset in the right part of the terminal will take you straight to a price chart. It will reflect the market price, as well as two equidistant horizontal lines (one above, the other below the price), which is called the channel.
The task of the trader in options trading the Boundary to determine whether there is a price beyond the formed horizontal lines of the channel or stay inside by the expiry. You can earn in both cases, acquiring the appropriate options.
Unlike transactions with One touch for binary options trading on the Border is not enough, what would the market price have just touched the target level (one of the boundaries of the channel). At the time of expiration is fixed the value of the market price, then the system determines, inside the channel or outside it, is the price.
Binary option Border trading rules
Before we purchased the option, the boundaries of the channel, as has been said, are moving with the market at a fixed distance. When we conclude a deal, the location both horizontal lines is fixed. How to determine when the probability of exit prices abroad channel is higher than the probability to stay between the lines and Vice versa?
For this we need economic calendar, as well as a General idea of what time of day chosen asset the most and the least demanded in the market. The demand can easily assess the behavior of market prices, for example, if You pay attention to the currency pair GBP/USD, you will notice that in the morning (Moscow time) the interest in this instrument is very low.
At the same time, in the middle of the day, many of the assets on the contrary popular, and therefore, the higher the probability of market prices set by a broker of the border. To dramatically increase your odds when buying an option, "outside", it is desirable to use an economic calendar. There you can see when it is expected to yield important news for our selected asset:
Open the terminal for a few minutes before the time of the news and buy a binary option the Border with the expectation that by the time of the execution price outside the channel. Naturally, the news calendar you need to choose big, she could greatly affect the market.
We do not care where it will go, the price after the event, up or down, as long as she had shifted dramatically, breaking one of the lines on the chart. Generally important news are marked in the calendar with three bulls ' heads, which means a high probability of a strong influence of the information on quotations.
To get binary options when price remains within the channel, in quiet market time. To do this, define the period with the lowest market interest in the selected asset, as well as to make sure that before the time of expiration is not planned the release of important news that could affect the asset.
If you work with options on stocks or commodities, to determine the time when the interest in the asset is not high, will be difficult. Currencies in this respect easier because in the morning, not yet opened stock exchanges in Europe, the European currencies (eur, gbp, chf) demand is quite low.
As you can see binary options Boundary it is possible to adapt. In my opinion, for a start it will be easier to work with those options that will bring a profit if the price goes outside the channel ("out"). In this case, you can use the economic calendar that allows to know in advance when and on what is the asset expected market excitement. Such situations occur weekly and can make good profit.
|Category: Binary options | Added by: (07.11.2017)