Why are trading binary options better in today’s markets? In today’s market environment, where traders have access to 24-hour breaking news and any type of news can cause the market to go against you, trading binary options offer the advantage of locking in risk on entry. Friday was a great example as all the timeframes indicated the market would move up and it did — until the NEWS came out.
Why Are Trading Binary Options Better in Today’s Markets
When trading futures or forex, traders are utilizing leverage to increase their profit potential but it can also increase their risk, even if using stops. Since all the charts indicated an upward movement, I entered daily binary options on both the Nasdaq and Dow (eminis). Typically I trade the 2-hour binaries but wasn’t feeling very well so I opted to use the daily binaries and just monitor the position throughout the day. At 12:30 pm New York time, the charts looked fine and we had just had a reversal bar to the upside so a new high should be put in on the Nasdaq.
Then……………………………………………..the news came — the FBI has potentially found more emails in the Clinton email scandal and DOWN the market went.
Why are trading binary options better? In this example, while I would never leave a futures or forex position on intraday without being at the computer, trading binary options I can. If I were not comfortable with the risk on entry, then I would not have entered the position. Friday was a great example because even though I wasn’t at the computer and the news came out and the market went against my position, my risk was limited to what I paid on entry versus whatever the margins were and, in some cases recently, whatever I have in my account which is why are trading binary options better.