Binary Trading Offers a Boon for Bears and Bulls Alike In Volatile Markets

So perhaps you have been confidently trading the markets for years and doing rather well, or maybe you have been losing both money and confidence since the end of 2008. You are not alone. More traders, both bearish and bullish have been looking to secure their trading accounts and adopt more defensive strategies in current market climates.

Thankfully, a new way to trade markets has arisen which suits day traders, weekly traders or those who prefer to go long over the longer stretch and offers a way to profit from share trading, currency trading and commodities alike, namely binary trading.

Binary Bets (or binary options in the U.S.A.) are increasingly being adopted as a complementary strategy to other trading strategies or is replacing riskier market practice. The growth of this strategy is easily appreciated. Binary betting offers both financial fixed odds and simplicity of method.

Financial fixed odds means that you are more in control of profit generation for your account and it therefore offers greater security in trading and protection of your investments. Who wants to place a £2000 trade only to see your whole account wiped out in one fell swoop? Tragically, too many traders are seeing their profits savaged by current volatility and unprecedented market conditions.

Why is this method favoured? Look at how the binary betting strategy operates practically. It is not unlike futures or spread-betting, in so much that it works on a points based system.

Let’s say you are a day trader who wishes to trade for one day and you believe that the market / commodity / share price on this day is going to rise overall.

So you open a binary bet and are quoted a price of 48 for the UK market, etc. to close higher for that day. You decide to risk £5 per point. As binary bets work on a price of 0 – 100 this means that if you win, you will earn 52 x £5 i.e. £260. This figure is the 100 – 48 (cost of the bet) x the amount you stake, being £5. Had the market gone against you, you would know in advance that your loss would be exactly our stake x quoted points; i.e. 48 x£5… £240.

So, with the binary bet, there are no unlimited losses, nor any need to care how far the market moves one way or another, all you need is for the market to close higher by the end of the day and you will win.

Predict the up or down movements in your favoured trading instruments correctly for 51% of the time or more and you are achieving better risk control of your trading account, sound money management and effective profitability over the longer term. Couple this with powerful staking software and £2000 can realistically become £200,000 in two years.

So it makes perfect sense that an increasing groundswell of traders feel that binary bets and fixed odds products are an excellent tool for both new traders and more experienced traders alike. In the current unpredictable, volatile and riskier market conditions we are seeing presently, simple binary trading solutions with predictable financial fixed odds offer greater safety and protection in an increasingly defensive market atmosphere.

Contact Elm Trader for expert, ethical advice on how you can use binary trading to profit from an increasingly popular profitable strategy.