Range binary options. Trade system “Night canal”
Do you spend time, searching for profitable trading strategy, waste time on their testing and you can’t still find anything appropriate? The most interesting ways of trading are near you. It is necessary just to experiment a bit and think how you can use the peculiarities of financial markets, which exist for many years.
For example, at the time we are sleeping, the market of the majority financial assets falls asleep too. But almost all trading instruments are moving in narrow range, without showing volatility. It depends on the time of trading in worlds markets.
How can we use it?
If w know, that the market is in narrow range from 22:00 to 08:00 of Moscow time, so it is a good idea to use this situation in binary options trading. Many trading terminals have RANGE options(to be more precise, their type is IN-RANGE). In many cases, such options in terminals or trading slang are called “Range binary options” or “In-Range”. What is special in them? A trader gets the profit from this kind of trading, if he prognoses correctly the variant of being or going out of the price according to fixed up or down levels, according to strike price.
Thus, if we know about the peculiarity of price motions in narrow ranges, it will be correct to trade this option IN-RANGE, prognosing its being within the limits of price range during the time of contract existence.
You should open your terminal in the part of trading “range binary options” or èëè «IN-RANGE», it depends on the name, which was chosen by a brokerage company, and choose for yourself the most appropriate financial asset. The criteria for that is the factor of volatility. That is, you need the asset with narrow range of price variation.
For example, we have chosen the asset – currency pair EURUSD. Why this one? Because at night European and American currency markets are sleeping, they would be able to “shake” the quotations of this currency pair.
After we have chosen the given currency pair, we need to identify its price canal, with which it moved before.
That is, if we decided to start trading at night at 10:00, we identify price range according to its condition at the mentioned time, which, on screen, we saw in the form of two horizontal lines.
After it, we identify the centre of this range (on screen it is red dotted line). This centre will be the spot of our entry the market, that is, the spot of deals closing by «IN-RANGE» option, betting that the price will stay, during the time of option contract existence, within the limits of range.
As you see on the screen, later, the quotations of instrument changed the level of their motion and continued their trading, within the limits of the same narrow range. In this case, we must wait the moment when the chart sets its small local minimum and maximum, ad continue trading within the limits of the given range. So, we identify the centre of gravity of the canal, which we will use, closing deals by «IN-RANGE» option, betting that the price will stay during the option contract life, within the limits of range.
Do you want to choose the broker of binary options, who will give you for trading range binary options? So, use our rating of brokerage companies.
THE TIME OF EXPIRATION
Using range binary options, we don’t need to choose big terms of contract expiration. It is enough the standard term 15 minutes. Thus, during 5 hours, you will be able to enter the market 5-7 times without any problems. It is important not to hurry and wait, when the quotations of financial asset come back to their centre of gravity, which you identified as red line in price canal centre. Only then we will close a deal by «IN-RANGE» option.
As a rule, range binary options have the profits 70%-85% from the size of bet, which is in fact the standard size of pay out and can make your trading a profitable one. On average, for 3 profitable deals there is 1 loss.
That is, if in night trading, you closed 6 deals by «IN-RANGE» option, it means that having profit of 80% and the accession rate 100$, you will have 4-5 profitable deals, that will bring you 320$-400$ and 1-2 loss, that will take from youè 100$-200$. That is, trading within the range, put your aim on the profit of 120$-200$ from one financial instrument. But, calm situation of night canal trading lets use 2-3 financial instruments at the same time, that will increase your profit automatically in three times, having made the income of 360$-600$, it is more than enough, having the starting lot in trading 100$.
Do you want to choose a binary options trader, who gives for trading the minimal pay outs? In this case, use our rating of brokerage companies.
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