Strategies to Invest

With an increasingly growing demand in binary options, several trading strategies in binary options have also been developed. These strategies have been developed by expert investors and even by some investment banks. We must bear in mind that with the increasing level of speculation, risks also increase, which underscores the need for precise investment strategies.

Today binary options investors require a good command of binary options trading strategies to get the most out of their online transactions.

Buy a Call or Put option

The basic strategy of investing in binary options is to buy Put or Call options. The advantage of this strategy is very simple, for example: if you invest $ 500 in a put option for the currency pair EUR / USD, to expire at the end of the hour, you can get up to receive a return of $ 850, according to the return offered by your broker. Even if the option purchased had ended out-of-the-money or in losses, you would have received a 15% return for your initial investment anyway, depending on how we say the chosen broker.

Buy a Call option and a Put option at the same time

One of the most popular strategies nowadays to trade in binary options is that when investors are conducting a trade transaction, and they understand that their option will end out-of-the-money, they decide to buy options for the reverse trend. For example, if you have invested $ 100 in a call option that will expire at the end of the day for a nominal price or strike price of $ 1.18, when, as the hours pass, you have the impression that the option is evolving in the Contrary to the forecasted in the beginning, you can implement a strategy of trading in reverse binary options. One of the most common strategies of trading in binary options is to buy a put option for the same value ($ 100), which will allow you to minimize possible losses.

Redouble the value of your investment

One of the most popular binary options trading strategies for advanced investors is to double the investment in their operations. Suppose, for example, that you bought a put option for $ 100 from the Dow Jones index at 10,033. In the event that the transaction is evolving in your favor and trading at a lower level than the initial one, you may well consider the strategy of acquiring an additional Put option. The advantage of this step would be to be able to earn high profits from your initial investments. Binary trading strategies of this type are usually adopted only by binary options investors who have in-depth knowledge of financial markets and for such purposes carry out a thorough analysis.

Strategy based on News

Another type of strategy, but at the same time more complex than trading in binary options, is the Pull strategy of the market. The concept of this trading strategy in binary options is to invest in a Call or Put option that is having dramatic changes in the financial markets. For example, rumors reached the press that the dollar will fall, which would motivate an investor experienced in binary options trading to buy a Put option for the USD / JPY pair. The general idea of ​​this trading strategy in binary options, is that the trend of that currency pair is going down, which would result in high benefits for the investor.

The best way to trade

Many are the trading strategies in binary options that can be implemented when trading online. The basic advice to implement various trading strategies in binary options is that you are the one who decides. This means that you can do what suits you best, since you must choose the most appropriate trading strategy for your personality and trading style and according to your experience. It must also be borne in mind that the most successful binary options investors implement several binary options trading strategies at the same time. Therefore, the more experience you get trading in binary options, the better. It must also have an appropriate behavior to manage its capital, manage risk, and should define a plan of action and strategy to invest objectively.