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Binary Options Strategy.

Started by admin, Sep 30, 2019, 04:15 pm

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Boundary Or Range Options.
An innovative trading styles introduced by brokers is ' boundary ' trading. The same trading style may be termed as ' range ' options by some binary firms but it means essentially the same.
What Are Boundary Options?
Boundary options deal with a range of price levels of an asset. Instead of predicting if the price of an asset will rise or fall, the traders need to predict whether the price of an asset will stay within certain limits ('boundaries') or not .
In boundary options, predefined upper and lower price levels will be specified by your IQ Option broker. You are free to select the expiry period. If you select a larger expiry period, the range of the asset will expand i.e. the upper price level will increase and the lower price level will decrease. As a trader you have to select from the two options: ' In ' or ' Out '.
Upper And Lower Range Or Boundary.
If you feel that the price level of the asset will stay within the specified limit, you should select 'In'. On the other hand, if you feel that the price level of the asset will end beyond the specified price levels select 'Out'. The 'Out' IQ Option would be applicable for two cases. One where the price is expected to go higher than the upper price limit and the other case where the price level is expected to end less than the lower price limit.
One aspect to be aware of is that brokers may set different upper and lower limits for the 'in' and 'out' choices. For example the upper level for the 'In' choice might be set nearer the current price - for example at 100 where the current price is 90. The upper value when selecting 'Out' might be 110. Not all brokers apply this extra 'margin', but some do, so it is worth being aware of. It is a method by which a broker can add to their own margins and protect themselves during particularly volatile periods, or from one-sided trading sentiment.
A percentage figure will be specified by your IQ Option broker which indicates the payout. If your prediction is correct you will make a profit equal to the predefined percentage of the amount invested. The profit is credited to your trading balance immediately after the result of the trade is decided. However, in case your prediction turns out to be incorrect, you will lose the money invested in the trade. The profit percentage depends on the broker and you may find different IQ Option brokers offering different payouts for the same asset.
forex trade binary options 2

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forex trade binary options 2

admin

Boundary Trading Strategy.
By now you you should have established that boundary or range options trading is based on the volatility of an asset. It is different from the traditional High or Low trading because in that case the upwards or downwards price movement matters. No IQ Option signal provider offers boundary options signals and you will have to use your own knowledge and analysis.
If you want to trade boundary options, the first thing to do is to gather information about the asset you want to trade. Suppose you want to trade Apple's stocks via boundary options. First of all you should study how the price of the asset has been moving for the last few days. You should have an overall idea if the asset is volatile or stable.
Next you must be aware of all the news related to the company. This can drastically improve your winning ratio. For example, let us assume that Apple is launching the next version of its flagship mobile phone today. Now if the launch is successful and consumers like it, the stock price would go up. If the product fails to impress the audience, the stocks may take a dip. There is a small chance that despite such a major event the stock prices stay stable.
It would be an ideal time to trade Apple via boundary options by selecting the 'Out' IQ Option. But if you are not aware of the launch of the new product by the company, you will miss out on the opportunity to make money. It is therefore, highly recommended to stay updated with all the news like quarterly report, hierarchy reshuffle, product launch etc. related to the asset you wish to trade.
forex trade binary options 2

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Touch / No Touch Options Strategy.
As IQ Option markets have grown, so too have the demands and requirements of traders. Experienced clients were requesting options that were similar to traditional Rise/Fall IQ Option, but allowed trading on volume and market volatility. Brokers were also keen to offer a product that could be traded in both flat and highly volatile markets. From here the " Touch / No Touch " options were born, which enable limited risk trades on volume and volatility.
Touch options explained.
The 'binary' element of the One Touch IQ Option remains, as does the limited risk. In order for a "Touch" IQ Option to finish in the money; the asset value must touch, or go beyond, the barrier (or 'target') level at least once prior to the expiry of the IQ Option .
A "No Touch" IQ Option represents the opposite - the asset value will not touch the barrier (or 'target') level at any point before the expiry .
In most cases, the barrier level is set by the broker. At certain brokers however, the trader can set the barrier. It could be higher than the current asset value, or it could be lower. The distance between the current asset value and the target price will generally dictate the payout structure. These images represent successful Touch and No Touch trades;
One significant difference with the Touch IQ Option, is that it can finish "in the money", before the expiry time. If the Touch target is met, the IQ Option pays out immediately, regardless of what happens to the asset value afterwards.
forex trade binary options 2

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forex trade binary options 2

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Broker differences.
Traders looking to utilise Touch options need to pay particular attention to their choice of trader. Firstly, some brokers do not offer them at all. Touch options at certain other brokers are not particularly flexible. Nor are the target levels. There are however, some brokers which offer a huge amount of flexibility. Here, traders can set their own target levels (payouts adjust accordingly). This offers tremendous opportunity to use advanced trading techniques. Setting Touch options at a range of intervals in order to control risk and return can ensure a trading edge. Traders can also set targets above and below the current value, creating "tunnel" options.
When to use Touch options.
Advanced traders will be able to use One Touch options successfully throughout their trading day, others may specialise. For example, volume and market volatility might be expected to change significantly after a particular data release or event. Likewise a market may run flat for a period running up to an announcement - and be volatile after. If a trader feels that trading volume will be particularly low, or particularly high, then the Touch IQ Option allows them to take a position on that view.
forex trade binary options 2

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forex trade binary options 2