Binary options strategies 2018 elections
The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks.
Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.
Skip to main content. Eurozone is expected to remain stable. Trading on Nadex involves financial risk and may not be appropriate for all investors. Past performance is not necessarily indicative of future results. Nadex contracts are based on underlying asset classes including forex, stock index futures, commodity futures, cryptocurrencies, and economic events. Trading can be volatile and investors risk losing their investment on any given transaction.
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Protecting Yourself on Election Day with Binary Options Protecting Yourself on Election Day with Binary Options As America goes to the polls today to choose their next President, the world awaits the results and looks forward to the end of a tumultuous election season. Regardless of your politics, no one can be sure of what the results will be and how the market will react. Get Started Fill out our online application in just a few minutes. Open an Account for Free Trade all the markets you love.
However, we will look at how a trader implemented cost averaging but in a responsible, limited-risk way. With binary options, the risk is always limited, so traders know their exact worst-case scenario without having to use the psychological capital of negotiating stops.
However, it was clear that volatility would surround the election returns. Rather than trade an outright futures contract, the trader took a binary option trade Tuesday night around 9: The underlying instrument was trading around The trader knew that there would be an uphill climb for him to make money, but felt secure knowing that his risk was limited while the index futures were tanking.
Over the course of the session, the futures began to rally strongly. In fact, they rallied all the way up to close positive on the day, settling more than 30 points above his strike price. Had this trader implemented his position with futures instead of binary options, it would have been unsuccessful because he would have been stopped out, only to later find that he had been correct in his thesis.
Had he held to a futures position overnight, his risk would have been in the thousands. This example provides just one demonstration of how binary trading allows many opportunities to profit with a specific, pre-determined risk in any kind of market, which is one reason why binary trading is one of the fastest growing movements in the world and in the United States.