If you are going to start trading in binary options then you already know the big advantages of trading binary options. In this article we will discuss a very simple strategy that you can apply in every certain situation and definitely it will give you great result.
The strategy I am going to discuss in this article is based on hedge and tries to obtain high profit in a small investment. But this strategy can be applied only in certain situations and it will be very grateful for every trader.
Before describing this strategy I want to use an example from the very beginning and also want to explain how to use the strategy how to use the strategy on that particular example. Let us consider that if you bought a call option on NASDAQ worth hundred dollars with the deadline after twelve hours. The NASDAQ value was twenty four hundred at the time you bought the option and after 4 hours the value of NASDAQ raises to twenty four hundred and fifty. In this situation you will have to buy PUT option on NASDAQ worth the same amount and with the same deadline as the first option.
If you purchase the second option then you have two possible outcomes, both options are winners for you if the NASDAQ price will be between twenty four hundred to twenty four and fifty at the expiry date you have two option one is winning and another one is losing option.
Let us analyze these both possible results, considering the NASDAQ option had an eighty percent profitability rate and a ten percent refund for losing traders. If both options are winners then you will get one hundred and sixty dollars.
To sum up the above, this binary options strategy ensures that your chance of winning is too high and you will lose small amount of money. Only one disadvantage is that you can use it only in certain situations, if you already have an option that had a very good start. There are many strategies for trading binary options but I like this one is very much it will give you higher chance of winning and lower chance of losing.