Volatile and Directional Trades Using Binary Options

In this example, Gail shows how she enters both volatile and directional trades using binary options.  In this case, she enters volatile trades based on the Crude Oil Inventory Report and a directional trade on the AUDUSD using binaries.

Volatile and Directional Trades Using Binary Options

In the TradersHelpDesk live trading room this morning, Gail Mercer, founder, enters both a long and short on Crude, both a long and short on the USDCAD, and a directional on the AUDUSD using binaries and spreads.  Although her bias was to the short side on Crude and to the long side on the USDCAD, with a market report, anything can happen.  She limits her risk to under $40 for both trades leaving a potential for profit even if she loses on one side, which is likely to happen.

However, on the Aussie trade, with bearish trend divergence appearing at the ATR, she does a directional short trade.

Volatile and Directional Trades Using Binary Options Results

The results from the trades (based on trading one contract) were:

  • Crude > 63.55 short, profit target at $15 hit
  • USDCAD > 1.2527 long, profit target at $85 hit
  • AUDUSD > .7858, short, exited at $43.75
  • Crude Long Spread at 64.00 – 65.50, loss $12
  • USD/CAD short, loss of $15

Overall Net Profit for Morning:  $120.50

Risk to Reward Ratio Achieved:  $1 to $1.23

 

 

About Gail Mercer

Gail Mercer, Founder of TradersHelpDesk, is a highly respected trader, trainer, author, and speaker residing in North Carolina. She has over 15 years of experience in trading and in the development of custom indicators.

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