THE HOT WINDOW
Part three: Having the right tools for the trade
Over time many tools have been developed to assist in trading binary options. These tools perform different tasks that provide useful and accurate information for successful trading. Here are two tools that we feel are extremely useful for binary options.
1) Cross market asset
This tool creates the ability for you to trade assets between different markets. Even though trading in other market can be beneficial, slow movement and volume can result in loss of investment. However, if a trader is successful in trading in different markets using the cross market tool, it can be largely profitable. This guide will show you how to effectively use the cross market tool.
Research a few assets. Study their prices, and try to identify how they perform in the market. Most importantly, try to see the advantages one asset has compared to the other.
The asset that you feel has an advantage over the other asset you research, select that asset using the cross market asset tool.
After selecting the assets, charts showing comparisons between the two assets appear. Use this information to help predict a future trade specific to these assets.
Also, review and compare the historic charts.
Make the trade when you feel certain, and keep tracking the assets.
Both markets must be open in order to make a cross market trade, which creates some limitation. The two assets must be available as an option to complete the trade.
2) Long term expiry dates
This is an extremely effective tool which offers traders the opportunity to trade binary options with the close being at the end of the month or year. By doing so, a trader can capitalize on trends that are seasonal or take advantage of hedging strategies.
Choose from an asset listed on the floor board; one that you’ve researched and feel comfortable forecasting its trends. Follow the current trend changes. Look for unique changes in its price points that repeat to identify a pattern.
After completing your research on the specific assets you want to trade, form a plan of action. Decide what future trades you are going to make, and feel certainty about the impacts your trades will have.
Apply the expiry date option to your chosen assets according to your strategy. Make sure your strategy is consistent with the research you performed on your assets to the level of comfort that will make you feel certain about expiry date choices following a predicted trend.
If an asset that you’ve set a long term expiry date for is not moving in the direction you predicted, and it looks like the long term trade can result in a major loss; you can trade the same asset in short term trades against your original prediction. If you see an opportunity to capitalize on a move even if it’s against a move you’ve already made, take advantage of it. Be sure that your new predictions are correct, and your profit can potentially offset your loss or better.
The only restriction this tool has is that its asset specific, meaning only certain assets have it as an option.