Trading EURUSD forex pair using binary options signals allows forex traders to limit their risk on entry while still benefiting from potential market moves. Unlike trading spot forex where the pip spread is used as “cost” of entry and exit. Plus, the pip spread fluctuates according to the market volatility. Binary options have an exchange fee of only $1.80 roundtrip per contract (or a cap of $18 roundtrip if trading ten or more contracts).
Trading EURUSD Forex Pair Using Binary Options Signals
This morning we had a binary options signal for the EURUSD forex pair to buy at or near 1.1284 at 7:10 am New York time.
Price was trading around 1.1287 around that time. The Nadex chart, which is pretty simple to use, shows that price is making higher highs and higher lows. On the current retracement, price makes a higher low in price but a lower low in the oscillator (also known as divergence). Instead of going in “At the Money” when trading EURUSD forex pair, since the momentum is indicating more upward movement, I opt to go out one strike price out. The signal was for at or near 1.1284. I opted for the strike price at 1.1290. This gives me a risk of $42 per contract (red box on the chart below).
We also have a market report at 8:30am New York time. This could affect the trade (negative or positive). However, since I locked in my risk on entry using the binary options, I know that my maximum loss is limited to $84 trading two contracts. The maximum profit potential is $116 trading two contracts.
TradersHelpDesk provides resources for trading EURUSD forex pair including online training courses on how to trade binary options, as well as for learning to trade support and resistance, divergence, and trading psychology. Plus, we also have an upcoming seminar in Las Vegas, NV on October 19 & 20, 2016 where traders can learn to trade high volatile market reports using binary options.
Update on EURUSD Forex Trade:
I closed the trade with a profit of $86 trading two contracts. In other words, I made 100% return on the investment.
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Basically, the more money you deposit the more free trades you get. It’s a great offer for those that are new to trading binary options.
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