How to Enhance your Trading Strategies with Binary Option Trading

There are many overlooked technical aspects to Binary Options that make them ideal for Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term strategy trading. The primary advantages, which we will summarize below, are related to leverage, risk/reward and momentum trading.

The most obvious difference between conventional Forex Trading Forex Trading Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Read this Term and Binary Options is expiration. Hourly Forex Binary Options expire at the end of the hour, and pay out a fixed return of 85% even if the expiration price is just a fraction of a pip in the direction speculated. This has major impacts on your trading strategy since it directly affects leverage, risk / reward and momentum trading. Since the payout is so high, 85%, then a $100 trade will profit $85 if it is just a fraction of pip “in the money” at expiration. Binary Options do not use leverage, so you cannot lose more than you bet. This aspect impacts your risk / reward as well.

The point at which all these components come together is most evident when employing a Forex trading strategy such as momentum trading. In the chart above, a breakout from the base formed by the EUR/USD causes momentum in one direction, but of unknown duration and size. This unknown is felt by the conventional Forex trader in terms of perceived risk / reward. On the other hand, Binary Options offer simple directional trading so they intuitively feel like a perfect fit for momentum trades. As long as you accurately predict direction of the breakout, you can make 85% profits by being right even if the pip moves a fraction in the direction speculated. This would have required huge leverages with conventional Forex with incomparable risk / reward.

If you’re interested in binary options brokers, you’re welcome to go to StartOptions. They’re a leading binary options provider with top binary options reviews. Check out the link below allows you to see how binary trading on the platform really works.

Receive a $750 bonus on funding account with $2000. Click to learn more: www.startoptions.com/learn

https://www.youtube.com/watch?v=eN07FG2G8S4&feature=player_embedded