Trading currency market using the USDJPY binary options provides a low risk high reward opportunity for currency traders. Here’s an example from this morning using the TradersHelpDesk Ranges, Trend ATR and Stochastic indicators for TradeStation.
Trading Currency Market USDJPY Binary Option
The 15-Minute USDJPY chart shows that price has tested the lower range line and the Stochastics was in harmony with price. In other words, price is making lower highs and so is the TradersHelpDesk Stochastics indicator. A short binary option was placed with $25 (per contract) of risk and a profit target was set at $15. This would provide a profit of $60 (per contract).
Within four bars the profit target was achieved. The profit (excluding the $2 exchange fee per contract) was $60. The risk to reward was 1 to 2.4.
The advantage of using the low risk entry method for trading currency market is the trader does not have to stress over the losing trades because the math is on their side. As shown yesterday in the binary option live trading room, a trader can have a low win / loss ratio and still make money. This is extremely important because traders will have bad days. The Out of the Money binary options provide an ideal environment for using low risk high reward opportunities.
Using the Out of the Money binary options for trading currency market the trader has a higher reward with limited risk (typically less than $30 per contract). Since each binary has a maximum payout of $100, the trader has more reward (70 after the risk) than risk on the table.