Home / Strategies / Range and Volatility Strategies
Login | Register
Lost Password

A password will be emailed to you.

 

Range and Volatility Strategies

Once you’ve covered the basics of binary option trading as well as understood how to employ bullish/bearish strategies, we recommend looking into more advanced possibilities like volatility and range strategies.

When looking at the market, a specific direction may be hard to determine, but you still may believe there is money to be made. By trading a specific stock or commodity, you can only decide if that asset will rise or fall, but with binary options you have more flexibility.

By looking at any asset’s graph/chart, you will notice that at any time interval, the asset fluctuates in and out of “ranges”. These oscillations within and outside of ranges allow even a beginner trader to earn even when the market is not signaling a solid {trend}. In these situations, which are very common in any asset class, we recommend looking at the possibility of “RANGE TRADING” as it is called.

In this strategy, you will try to identify an asset showing no clear sign of a trend and then choose an appropriate option in order to earn. For example, if you believe that the price of the NASDAQ stock index is fairly stable, you can buy an option that is “IN the range. Simply choose RANGE options, find your asset, and then click “IN”. If the option appears to be volatile, so that the oscillations of the asset are dramatic yet show little signs of choosing a definitive direction, the trader can buy an “Out of the range option.

Trading Example:

After analyzing the NASDAQ index using technical analysis, you notice that the index is fluctuating in dramatic fashion yet hasn’t shown signs of a trend. A range option may be a good choice here so you decide to buy an “OUT” of range option, seeing as how volatility is seemingly high. If you are correct, you will be in-the-money if the market goes beyond the range.

 

OTHER BASIC STRATEGIES

 

No tags for this post.