The basics of the long shot trading strategy

If you want to increase your Forex trading profits significantly then binary options are the perfect choice. There are two main strategies that work namely long shot and time vault. For the most part, this type of trading offers ‘all or nothing’, where the value of your option at the time of expiry could be 0 or $100 (the amount you invest). The long shot option strategy forex allows you to risk a small amount with the potential to earn a large payout. This involves buying an option that is far out of the money hoping that the currency pair will move a long distance to reach or exceed the purchased strike price. Succeeding once out of five times can bring in a significant profit. For example, if you buy a 1.3100 call on the EUR/USD which is at 1.2815 at a price of $19, the Euro will need to gain at least 400 pips for you to win. However, you can gain as much as $81 for a $19 investment. You can recover from four $19 losses and recover with one $81 gain as long as the fifth trade is successful. If you spread $19 into ten purchases you only risk $190 to gain $810. Over time, a 50% success rate can net you as much as $6,000 a month.

Time vault binary option strategy forex

In the time vault strategy, you buy an option deep in the money anticipating that the currency pair will remain within the purchased price at the time of expiry. The strategy is based on the fact that time is in your favor. The chances of winning when you implement this strategy are high although you may pay more for the options. For example, if the USD/EUR pair is at 1.3825 and you buy a call option for $85 at 1.3600, the price needs to only remain above 1.3600. A 200 pips drop will also help you make a profit. By placing 10 similar trades, you spend $850 and gain $150 in a strategy where the chances of winning are high.

Learn to play far out or deep in the money

Many experts recommend that it is wise to stick with one of the extreme ends in the spectrum in forex binary options trading, which is far out in the money or deep in the money. . Moreover, your gains and losses will be the same while you need to speculate correctly most of the time.

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