Using low risk entries on EURJPY currency with binary options allows you to easily recover a loss.
Using Low Risk Entries on EURJPY Currency with Binary Options
In this video, Gail Mercer, founder of TradersHelpDesk, shows why using low risk binary options is important. She has a short position on the EURJPY currency with binary options and adds a long position to cover a loss.
The first trade was a short because a retracement was anticipated down to 123.46. However, the market did not make it there and Gail adds a long position for only $18 of risk. The short (which was 2 contracts) had a total risk of $39 and the long position had a total risk of $18. A profit target on the long was set at $85. If the target was filled, a profit of $67 would be realized. After allocating for the $39 loss, the remaining profit would be $28.
Although sometimes you can exit a losing position early, in this case by the time the reversal bar formed, the trade was already at full loss. This is a great example showing why using low risk entries are important because there is still sufficient room for profit even after a full loss is taken. Of course, you do need to be able to calculate the risk and reward benefits before just jumping in and both sides is only recommended if using a low risk entry method.