Get to grips with the basics first
If you are up for a challenge and looking for more advanced binary option strategies than the ones we outlined in our ‘Implementing Basic Binary Option Strategies‘ article then you are in the right place.
Here we move on from some of the basic trading strategies and combine them with other scenarios in which to optimise your binary options trading potential.
Doubling up your trades
Doubling up can be a very profitable strategy to apply if you have experienced knowledge about the financial markets. What this trading strategy does is take into account an initial option purchase and your knowledge of the market in which you have purchased. Essentially if you make an initial Call option at the current price and you notice that the your asset is trading above this price and you believe that it will continue to do so you would then make another Call option in order to make a higher profit. A simple strategy but you need to analyse the market and know it well in order to pull it off.
This applies that you have have more knowledge about more than one financial asset or market or are willing to take a risk. The idea is that the movement in one particular assets market can have an effect on another asset in the same market. If you see a rise in a stock for instance then it could be seen to affect the index in which it is traded. This can be the same for commodities and currencies. You need to be able to analyse multiple financial markets and see how they are related and know the relationships between them in order to accurately place your option.
The straddle is seen as an advanced trading strategy as it means buying a Call and Put option on the same asset. What you essentially do is add a Put option as high as possible on the asset and then when the market sees a drop place a Call option in the opposite direction. What this does is provide a profitable area between the two options which increases the chance of success. This can be a seen as a risk management strategy which can be used in particularly volatile financial markets in order to bring a return on your investment. The great thing about this binary option trading strategy is that you do not have to buy the options at the same time, this means that you buy an initial option with a longer expiry time and wait to see the direction of the market and then apply a second option with a shorter expiry time when you feel comfortable to do so.
The market pull strategy relies heavily on dramatic changes in the financial markets. The concept is to invest in either a Call or Put option when you have good knowledge that the market will either rapidly rise or fall. This strategy implies that you keep up to date with daily and live data feeds on your preferred markets in order to counter the economic and financial markets with a profitable investment solution.
There are many strategies that can be applied when trading binary options online and it is up to you to figure out which ones that you are willing to employ in order to minimise your risks and maximise your profits. Some of these more advanced strategies can be higher risk if you are not experienced at forecasting the financial markets. Try out little investments with these strategies and get to know your markets inside and out until you feel comfortable that you can perform more successful trades than unsuccessful ones.
Try these strategies out at some of the top binary options brokers online »