Binary trading is simple, easy to master and available to everyone all over the world. All you need to have is Internet connection and a deposit and withdrawal method you prefer. Of course, if you want to achieve success in trading, you also need to have some skill and knowledge about the trading and the way markets work.
Like any other trading, binary options involve a certain amount of risk. In order to maximize the success and lower the risk, you can implement certain strategies to make it possible.
What does the risk depend on?
Most people believe that the amount of risk in binary trading is 50%. However, the real risk depends on a variety of factors, and it can definitely be higher or lower. Depending on the amount of your knowledge, the assets you trade, expiry time – you can change the level of risk.
Trading with binary robots also changes the risk level. Some robots are more, some less accurate. Also, some allow you to set more, and some less parameters for trading. Even though you cannot fully control the risk, you can minimize it by combining all the factors above. Explore one of the best at http://www.top10binarystrategy.com/review/gemini-2/. There are also several risk management strategies many traders implement. They can help you reduce the risk further and make the trading more successful.
Buy low sell high
This is a rather logical and well known trading strategy. It is also quite old, but many modern traders like using it because it is reliable and makes sense. When you use this strategy, you should call an asset when its price is on the fall. It presumes that the price will not fall further, but it can only go up. Following the same logic, you should call an option when you determine that it has reached the maximum price, because it can only go down from that moment on. This strategy requires monitoring the market carefully, following its changes and determining patterns. This is why it is suitable mostly for traders who already have experience in trading.
This is one of the most popular trading strategies. This is because it is easy to learn and it is suitable for both experienced and new traders. It relies on both calling and putting the same option, but in slightly different time frames. For example, if you call the option first, you can later put it with the same or higher amount of money if the price seems to fall. This way, you will cover the loss from the first option, and make some profit after all.
Rollover and early exit
Rollover and early exit are not the strategies you can use with every broker. As a matter of fact, these are the features available on some trading platforms. Rollover allows you to extend the expiry time in case that the asset’s price does not move in the desired direction, but you believe it will change. Early exit allows you to end the trade earlier, when you see that the price is changing in the direction unfavorable for you. If your broker offers some of these features, it can be very useful and help you minimize the losses and the risk you take.