Trading Bank of Canada Rate Announcement using binary options and spreads to limit risk in both directions.
Trading Bank of Canada Rate Announcement
In this video, Gail shows how she traded the Bank of Canada Rate Announcement on the USDCAD using both binary options and spreads.
In this example, Gail has a bias to the upside because the 240-minute chart is at the ATR (plus sign), the 60-minute is at a Congestion Dot, and the 15-minute is showing that the market is overextended to the downside. These are indicators that the market will go up. Gail enters a long spread for a total risk of $180.
However, the market will do what the market wants to do. Therefore, Gail does a protection order using a binary option to the short side with a total risk of $215. Although there is a possibility of losing on both positions, there is also a possibility that one order will recover the loss on the other order, which is exactly what happened.