Hedge the news with Binary Options Good Day traders, In this article I am going to explain you a very simple but effective system from which you can make a sure profit using binary options.
I use this strategy sometimes, mainly when we have news realises. Where is the problem with news realises?
The market always is makes the big move some seconds after the announcement. You can know it about one minute later when the economic sites will post the announcement.
So, what I do? I use two monitors. One for the charts and another one for the orders.
I was waiting to close the last candle one minute before the news, at AM, and in the next candles, the news candle I am looking for buying or selling climax. If the candle starts to be green this means heavily buying activity some seconds after the news, the market will move up. If the candle starts to be red with selling climax this means heavily selling activity and the market will go down.
Things are a little more complicated than they seem on the surface, but they are much simpler than you might think.
Sometimes we have a correction exactly after this candle and the market goes to the opposite direction but the most of the time the first candle after the news, the news binary options trading during news as I call it show us the way. To avoid unpredictable conditions like the condition I said above you can do one simple thing.
Hedging the news.
For doing this you can use two different financial products in the same asset. I take my main position usually with a Spread Trade and I am hedging this position with a binary option contract.
The fun is beginning. Some countries decided to fully erase Binary Options from their legal framework. What is the essence of binary options? BO is a mere bet on the market. You can place it in accordance with two schemes: exchange-traded and betting.
Look at this chart. When the news candle starts to have buying climax the market shows us the way. You open your buying position. Scenario 2: The first reaction of the market was false and it moved in the opposite direction.