Trading EURUSD binary options takes the stress out of trading during a rate announcement. This morning, the first thing I noticed was that the EURUSD 180 minute chart was trading at a congestion dot (white dot on the chart below). In other words, price had formed an area that would support an upward move. The ADX magenta peak kicked it off about 7:35 when the Challenger Jobs report came in at -13.
Trading EURUSD Binary Options Anticipated Movement
While only anticipating an eighty pip move, I opted to do both a long and short binary spread option for the EURUSD. With the anticipated rate cut and the ECB announcing more measures, it could go up eighty pips and then down eighty after the ECB conference. By trading the EURUSD using both positions (straddling price) with the two hour binary spreads, we could capture both sides.
It just went up. And up. And up. We were able to exit the short for a paltry $7 loss and made $60 on the spread.
With price moving as quickly as it did, trading the futures or forex could have resulted in massive losses. This is exactly why I love trading the binary options during these monumental reports — you enter knowing that the loss cannot be more than you paid on entry.
The THD Strategies automatically highlight the entries for you. The ATR strategy also identify the profit target and has two built-in stops. One stop is based on the ATR stop indicator and the second stop kicks in once a minimum profit target has been achieved. Then the stop follows price closer to get more profits.
The THD Strategies will be available soon on a subscription only basis (either quarterly or annually) for clients that have the indicators. Of course with our new subscription service, clients will always have the latest indicators, online training courses, and access to a weekly webinar on Mondays from 10am till noon.