As an interesting and exciting aspect of the financial trading market, binary option trading is mentioned often in the last years. Binary option trading has only two probable outcomes, a win or a loss.
The fast returns and handsome profits are the key features of this type of trading that has appealed so many investors to it. Different binary option trading strategies are available which are followed by different investors.
Although the strategies followed are diverse, the basic concept is the same. The trading in binary option yield the turnover fast, because of this it is rapidly becoming popular. In binary option trading the turnover can provide daily or even hourly results.
For this reason good returns are guaranteed if you follow good binary option trading strategies.
Here we would mention a few important strategies:
The Pairing Strategy
This strategy is able to yield high profits from a binary option trading contract. Is is based on the pairing up of an &”in the money” call and money put, creating a nested position. That’s why you can still earn money if the spot price is between the two prices at the expiration.
Hedge and Double Position
Another binary option trading strategy is pairing a put with a call into a hedge and double position. This strategy helps to make very high profits.
For more information about the hedging strategy, please read a detailed explanation of ” Hedging Strategy in Binary Option Trading.”
Binary Option Betting Strategy
Binary option betting strategy is another popular strategy. In this strategy an investor uses a call or pull option if an unexpected move occurs in the market. This strategy is based on the fact that people put positions on indicators which have large scale impacts on the market prices.