Strategies for making money on binaries. What is binary earnings?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Being in full control of your time and not living from advance to paycheck is everyone's dream. But very few people have the patience and knowledge to achieve financial independence. One of the ways to gain a permanent source of income is binary options trading. You can't call it easy. To achieve success in this area, you need to constantly improve your level of theoretical training. We will shorten your path a little by talking in this article about the best strategies for making money on binaries. But before that, let's reveal the very concept of an option.

Definition

Options began to be used as a financial instrument for transactions in the middle of the 20th century. It was mainly used by large companies, but the massive development of Internet technologies opened up access to them for individuals. They could buy and sell option contracts using binary (digital) options. A binary option is a special case of a classic option contract, which is structured so that the potential lossor profits are known even before the conclusion of the transaction. This significantly speeds up the option price determination algorithm and simplifies the risk forecasting process for the trader.

Each option contract has a specific expiration date. That is, the exact time of profit or loss is known in advance. Also, each contract is linked to the underlying asset - a currency pair, stock or index, the price movement of which will determine the final result. We hope that now you understand what is earnings on binaries. Let's move on to the description of the strategies. So, let's get started and consider trading strategies for making money on binaries.

Martingale

This system is borrowed from the field of gambling. Its essence is as follows: you start the gaming session with a predetermined rate. In case of loss, it must be doubled in order to recapture the lost funds. In case of a win, the bet remains fixed. The Martingale system has been actively used by players since the middle of the 18th century.

If we consider all the strategies for making money on binaries, then this one is perhaps one of the most popular. On options, it is better to use it with a pronounced trend direction (up or down). For example, you start with a bet of $5. If you lose, you need to bet 10. If you lose money again - $ 20, etc. After winning, the bet again becomes $ 5.

The key point is that the bet is always made in the direction of the trend. If you lost it 7 times in a row, then start again. But such losing streaks are a bigrarity. What other ways are there to make money with binaries?

Channel lines

This is one of the methods used in technical analysis. Channel lines are marked on the chart, between which the price moves. The top line is the resistance level and the bottom line is the support level. If the price tested the levels a couple of times and did not pass through them, then this strengthens their reliability. It is likely that the third time she will be able to overcome them. And then the fun begins: determining the correct entry point. There is no need to worry about the exit point, as all options have a fixed expiration date. You should enter the market immediately after confirming a breakout of the current support or resistance level. That is, the price should go beyond it.

Moving averages

No other strategies for making money on binaries are as simple as this one. In addition, it gives excellent results. It is better for beginners to start binary options trading with it.

This method is based on the intersection of moving averages with different frequency. Indicators of 5 and 25 work best on half-hour and hourly charts. You can use charts with a large timeframe. But less than half an hour is not worth it, because due to market noise, a lot of false signals appear. The moving averages cross points give signals for making trades.

Determining the direction in which you need to open a deal is not difficult at all. When fastmoving (red) with an indicator of 5 crosses from top to bottom slow (blue) with an indicator of 25, then this is a sell signal. Crossing in the opposite direction is a buy.

The three strategies listed above for making money on binaries are the most common. Let's talk about a couple of less popular ways.

1000 traders forecast

Here it is necessary to evaluate the bets made by 1000 professional dealers. The risk should be as minimal as possible. This strategy works best on trades that exceed the 60 minute threshold. The green indicator indicates an upward trend. Red indicates an imminent decline. It is necessary to choose the asset, the forecast of which has a one-way ratio of 90 percent or more.

Following the market trend

Large financial institutions (banks and investment funds), which often use binary enrichment strategies, constantly monitor the markets and make trades. Their actions directly affect the increase or decrease in the value of the asset. The main principle of the strategy is very simple: if the recent history of an asset indicates its constant and significant increase, then this trend is more likely to continue in the future. Therefore, you need to invest in an asset that goes up. The same logic applies to cost reduction. With regard to options, trends are best tracked on five-minute charts.

Conclusion

Now you know the best binary trading strategies. You just have to make sure of their profitability and reliability. Put them into practice, hone your skills and become a successful trader. Good luck!