How do binary options work?
Binary options work on an all-or-nothing principle. The transaction has only two results – the trader either wins or loses. Winning depends on the conditions of the broker (70, 80, 90%), and losing is always 100% of the deposit. Binary option quotes are provided by the price of the underlying asset.
How trading options differs from the Forex market?
The difference is expressed in two main aspects.
First, in Forex we have unlimited expiration time. The deal is closed manually after the stop-loss or take-profit is reached or when the trading balance runs out of money. BO is a contract with a fixed expiry time.
It opens for 2 hours or 1 hour depending on your trading style. There are also shorter options and turbo options (from 30 seconds). So you have to guess not only the price change, but also the time frame in which it takes place.
Secondly, a fixed loss. A drawdown on Forex can squander our deposit as much as we want. Equally, a profitable trade makes money as long as the trend lasts.
The binary options contract closes at the appointed time regardless of whether we want to continue. It is also impossible to discount it early with a partial return. We remember: the best binary options trading strategy is simple – it’s all or nothing.
Why is a broker needed?
Binary options are an over-the-counter asset. They can only be purchased from a broker. Brokers also provide an online trading platform, trading account and other tools. Are broker-dealers legally regulated? For now, there is such a law only in the USA. The rest of the brokers are offshore and take advantage of the fact that so far nobody is interested in their activity.
Binary trading strategies for beginners
The basis of profitable trading in exchange-traded instruments (stocks, commodities, futures contracts, currencies, binary options) are strategies that can predict the direction of price changes and limit traders’ risk. You may use ready-made systems or create your own best binary options strategy.
Most successful options strategy for 60 second
The key task for every trader, especially a beginner, is to intensively build up capital. Therefore, the best binary options strategy for 60 seconds is a good way to increase your income and move to the next level in this field of activity. It will take a lot of effort and a personal algorithm of actions to get a stable income.
Best binary options trading strategy for Turbo options Score
The use of this strategy involves interaction with the following indicators:
- Bollinger Lines.
The specifics of this most successful options strategy is based on the WMA line crossing the moving Bollinger chart on the basis of RSI signal crossing the 50% level.
This algorithm is based on the principle of combinational use of various indicators with quick reaction on the movements of quotes. Application of extensive analysis services allows to get more than 80% of correct predictions at 1-minute intervals in the market.
Best 60 sec binary options strategy One Liner
The next most successful options strategy, which allows to improve the performance of income at the speed of conclusion of contracts, is considered to be the system One-Liner. It is based on simple indicators available on any platforms for binary options for 60 seconds. Therefore, the methodology is becoming in demand because of its versatility. You can try this strategy on the platform of a licensed binary options broker, such as eToro.
How this best binary options trading strategy works
In order to generate predictions with maximum accuracy in a short time frame, it is necessary to draw a valid strategy template on the chart. It is based on the following technical settings:
- The trader opens the chart of the trading asset and selects S15 in the time interval parameters.
- In the section Simple MA a period of 30 should be specified. This tool allows to get technical information about vector progression in the middle term range.
- Use 2 MACD oscillators. In the first case you should choose the interval 5/10/9, in the second case – 20/40/9. Such settings allow you to select the most dynamic trend reversals.
Detent best binary options strategy
Another most successful options strategy for making forecasts is the Detent strategy.
It belongs to the indicator category and provides accurate signal generation for 1-minute bets.
How the best binary options strategy Detent works
The technical description of the strategy mentions the use of 2 technological indicators, which evaluate a set of market indicators.
To start working with the system, you will need
To make a deal, you need to provide the following conditions:
- A chart of assets with an interval of 5 to 30 seconds.
- QQE oscillator-type indicator.
- SSRC indicator.
This set of tools provides a quick response to market chart jumps.
5 minute binary strategy
The most successful options strategy of binary options trading is growing due to the ability to solve financial problems in a short period of time. With the use of 5 minute best binary options trading strategy, traders sometimes increase their deposit by a factor of 2 or more. Each trading tactic is characterized by peculiarities and risks that need to be taken into consideration.
Binary options strategy for “Third Candle”
An old tactic that has been used since the Forex exchange and futures trading. The most successful options strategy is effectively used for short-term trades on trend reversals and earnings on it. “Three candles” is the best binary options strategy for 5 minutes. The effectiveness of the tactic has been repeatedly confirmed, and the ease of application allows novice traders to comfortably trade options.
The system works on a chart that takes into account the position of 3 candles:
- 2 indicators of different colors next to each other give the first signal for a trend reversal;
- The deal is concluded when 3 candles appear, which corresponds to the previous one.
Installation of additional assistants to determine the direction of the chart is not required.
The strategy is characterized by:
- Increased efficiency when making transactions;
- Universality – the strategy is used on all currency pairs.
Even a novice trader can cope with the strategy.
Among the advantages of this best binary options strategy are:
- Increased effectiveness;
- Development of observation and understanding of the market;
- Training of patience at work;
- Various expiry times for profit.
RSI most successful options strategy
The “Three RSI” tactic is available to build using the tools of the MT4 platform. This best binary options strategy is also used for 5 minutes. Three RSI indicators with periods of 5, 14 and 21 are used in trading. Other indicators do not change.
Application of 3 standard indicators allows for this best binary options trading strategy:
- Filter out false signals;
- Strengthen forecast on the contract.
Characteristics of binary options tactics:
- The number of concluded contracts is reduced;
- There are practically no losing trades.
The tactic is suitable for lovers of quiet trading.
Accurate entries by strategy rarely occur, and a large number of concluded contracts leads to lower returns. The “3 RSI” best binary options strategy can be optimized, if desired, by adjusting and adding additional filters in the form of other indicators.
The effectiveness of the trading tactics slightly depends on the asset. This best binary options strategy can be applied to any currency pair or exchange instrument. The time interval used is five minutes, on high timeframes commands will have to wait for a long time.
Using a one-minute chart period is not necessary, because in this case, the prediction accuracy is greatly reduced. It is better to use a time frame of no more than 15 minutes.
Setting the RSI 3 times makes it possible to more accurately assess the situation on the market and find a good deal. Now it is necessary to wait for the moment when 3 indicators at the same time will be in the overbought or oversold area, then the corresponding option with an expiration of 3-5 candles is purchased. You can try this strategy on the platform of a reliable broker, such as Binomo.
The “Goldfish” most successful options strategy
Another trading system for binary options, the name of which is related to the smooth movement of the indicators. The chart looks like a fish swimming in waves, while at the same time the lines give out the most accurate signals for entering a trade.
An important prerequisite for using the tactic is to open a chart on the TradingView platform.
The strategy is characterized by the following parameters:
- Assets are analyzed on minute charts;
- Standard indicator Fisher;
- Stochastic oscillator with settings of 20, 3, 3;
- Contract completion period of 5 minutes or 5 candles on higher timeframes.
Advantages of the trading tactic:
- Higher/lower option profitability – from 100 to 250%;
- Advantageous terms of entry point;
- Increased passability of signals;
- Effective distribution of risks.
You can try to use 6 best binary options strategies by registering on the TradingView platform.