In the live trading room this morning, Gail shows the difference between trading binary options and spreads using a risk to reward viewpoint especially when trading counter-trend trades.

Live Trading Room – Dow and EURGBP Trades Using Binary Options and Spreads

In the live trading room with Gail Mercer (founder of TradersHelpDesk), she enters two trades on the Dow Jones and one on the EURGBP using binary options and spreads. She also explains why she entered, as well as why the spread was a better overall trade on the Dow Jones.

Basically, with the Stochastics overextended on the Dow Jones on 3 different timeframes, the most likely move was going to be to the downside.  She entered a spread and a binary option on both.  Both trades produced profits by expiration.

Gail also showed that the EURGBP was at the ATR (her entrypoint) on the 60-minute chart and a binary option was available for $20 in risk.  She set a profit target at $20 (resulting in a $60 profit).  The profit target was filled around 1:32pm this afternoon.