The EURJPY Binary Option Signal was issued at 5am this morning for an ATM at 130.40 and there were a couple of different ways a trader could take advantage of the signal.

EURJPY Binary Option Signal

When the signaled was issued, I set a limit order at $55 as described in the signal rules.  However, looking at the setup, it looked like it would take out the low at 130.21.  Since the issue came out at 5am, I choose the 7am expirations and entered both the ATM (using a limit order) and OTM at 130.29 that had $27 of risk.

EURJPY Binary Option signal

Notice that the limit order took six minutes to fill.  The OTM was filled immediately.  Both positions expired ITM meaning the full payout was realized.  The results were:

  • EURJPY > 130.39 (7AM), $55 in profit (excluding exchange fee)
  • EURJPY > 130.29 (7AM), $73 in profit (excluding exchange fee)

The total risk on both positions, based on trading one contract each, was $72.

The total profit, excluding exchange fee, was $128.

The risk to reward on the trade was $1 to $1.78.

Would I do this on every trade?  No.  But when I see that it is a really good setup (using the indicators), then I maximize my potential on the signal.  In this case, the EURJPY binary option signal classified as a really good signal because price was at an ATR that represented resistance on both timeframes used within the signal.  This indicated a strong tendency to test the prior low at 130.21.

By knowing when to maximize the trades, I can increase my risk to reward.