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Advantages of Binary Options - The advantage in trading binary options is that the expiration or expiration time can be very short. With a shorter expiry time limit that you use, it means the faster the profit the trader gets, and the faster it is to reopen the market so that the profit is faster with a very short time.
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IN ordinary forex trading, a short-term trader can only get a small profit for each trading position. The opportunity to increase profits is only by opening trading positions as much as possible so that each position can meet the daily profit target.
and the more often open trading positions with fast time and the right strategy, the easier it will be to profit.
The percentage of profits and the amount of capital can be arranged in such a way as to limit losses or maximize profit opportunities. So it is not surprising that binary options are preferred by short-term traders.
The above is certainly very different from the binary options which allow short-term traders to get more profit even though the duration of the trade is only in a matter of minutes or with a very short duration. This can happen because a trader in binary options can choose the percentage of profit and the amount of their own capital.
Facilities like this are certainly good news for short-term traders, especially for those who really like to open trading positions in a day with very fast turns and target profit with large numbers.
The 5 minute trading strategy is one of the best and simplest types of high frequency strategies. The main idea of using this strategy is to open trading positions when market conditions allow for short-term reversals.
Even though trading is only a short time, it does not mean trading is done without strategy. There are many binary options strategies that are based on the type of time frame and one of these strategies is the 5 minute strategy.
This method is not too difficult for you to learn, especially for people who are new to the world of binary options. For starters, you can use a chart with a time frame between 1-5 minutes with a 5 minute expiration limit.
There are a number of characteristic choices when you execute a binary options strategy in 5 minutes, including as below :
> Can generate good trading opportunities with a success rate of around 80%.
> Make it easy for novice traders to learn the basics of technical and fundamental analysis.
> This strategy is very simple and easy to understand for beginners.> Very suitable with forex binary options.
> It is very possible for traders to be able to open more than 20 positions for 1 currency pair in a day.
> Involves several techniques and also trading rules.
> Risks obtained can be minimized by adjusting the amount of capital for each option position.
To analyze each price movement fundamentally, many traders who use the economic calendar to be able to know the times when the release of economic news will have an impact on the value of a particular currency. Often data that has a big influence on currencies will be marked with 3 stars depending on the economic site that provides the calendar.
Similar to forex, binary options trading that uses news trading is trading by basing option placements on economic news from countries related to the currency pairs being traded.
Advantages of Binary Options - Usually predictions on the economic calendar can make it easier for you to open trading positions at the start of a trend. But when you only use the expiration time of 5 minutes, then you have to wait until the data is actually released. This is because the possibility of results can differ from expectations.
For example the US NFP which is one of the important fundamentals for the USD. You can place options for USD / JPY or choose call options for EUR / USD or GBP / USD after the results are released and place an expiration time of 5 minutes.
5 minute trading opportunities that you can take from emergencies to fundamental data include.
If the results of the data released are better than expected, then you can make an option call for the currency pair whose base currency is affected by the news that comes out. For example, you can receive an option call for EUR / USD after Eurozone inflation data shows better than expected results.
If the data results are released as expected, you may not open trading positions.
What if the results of the data come out worse than expected ?
The way you can do is to choose the put option for a currency pair in which the base currency is affected. For example, you can choose the put for GBP / USD after the BOE gives the decision to cut the benchmark interest rate lower than expected.
Place option calls for currency pairs whose currency quotations are affected by data releases. For example, you can receive an option call for EUR / USD after the US NFP data reaches a result that is worse than expected.
Also Read: familiarize yourself with the Swing Trading Methodology
All option positions that you can open must be set with an expiry time of 5 minutes. If you set an expiration time of less than 5 minutes, for example by setting a time period of 2 minutes, then the price has not shown a definite trend. On the other hand, if you place your position on a trend that lasts more than 5 minutes, then the price could potentially rebound.
Thus an expiry time of more than 5 minutes carries a greater risk in your trading. The expiration time of 5 minutes is the ideal time for short-term traders to place their options in accordance with the results of economic data releases. A 5 minute strategy to maximize Profit in Binary Options is highly recommended.
During the economic report is one indicator that has a big impact.
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