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.
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.