Combining the foreign exchange market and binary options
Trading on the foreign exchange market, which was a novelty until relatively recently, has long become a classic. Now it has to share its popularity with binary options trading and cryptocurrencieswhere the time spent on trading and analysis is less and the profits are often greater.
Naturally, every trader wants to try something new and profitable. But it is not necessary to leave the foreign exchange market, which has become comfortable for a long time. Today we will tell you about that, How you can combine currency trading and binary options trading.
Ways to combine trading in currencies and binary options
You may be surprised, but there is nothing particularly difficult about combining these two types of trading. Here are five of the easiest ways to do it cost-effectively.
Method #1: One analysis for two trades
Transfer a currency pair forecast to buy a binary option with a long expiry date.
For example, you conducted an analysis and forecasted an increase in the EUR/USD currency pair. You open a buy position according to your trading plan. Accordingly, along with an open long trade on the currency market, you can buy a Call option on the website of a binary options broker, by calculating the expiration time based on an assessment of the strength of the price impulse.
Method #2: Free up your time
Try to automate your trading on the foreign exchange market. The number of paid and free trading advisors offered to traders is now unbelievable. From all this variety you can choose an effective advisor, entrusting him if not all, then at least a part of trading on the foreign exchange market, thereby relieving yourself.
With a little less work, you can devote the free time to trading binary options.
Method #3. Reduce risks
If you are a careful and responsible trader, this method is just for you. When opening a trade in the foreign exchange market, take care that it requires a minimum of control on your part.
That is, in an open order must be present calculated levels of stop-loss and take-profit.
Having secured yourself from losing the deposit, you can, with a clear conscience, switch to binary options trading with short expiration periods, periodically monitoring the status of open transactions in the foreign exchange market.
Method #4. Binaries work on weekends
This method is suitable for workaholics. From Monday to Friday you can safely trade in the foreign exchange market. And on weekends switch to trading binary options on the OTC market with the help of OTC deals.
The OTC market has a slightly smaller number of traded assets, but it can be traded on the weekend as well.
In Russia, the largest over-the-counter trading floor is RTS Board.
Method #5. One-for-two strategy
Use trading strategies and technical indicators whose signals are suitable for both the foreign exchange market and the BOO market.
For example, if trading strategy involves entering a position at a price reversal point, then you can buy a Call option along with a Buy trade by simply switching to another window. It will literally take a few seconds.
Conclusion
As we mentioned above, it is quite easy to combine trading on the foreign exchange market and binary options trading, especially if you buy options on the same pairs on which you analyze and trade the foreign exchange market.
Nevertheless, not every type of trading is suitable for that. For instance, if your trading on the currency market is based on scalping or pipsing, then it is unlikely that you will be able to trade in parallel with binary options. It might be a stretch to do it in intraday trading as well - the trader's workload can be quite high, which leads to losing control and making losses on one, the other or on both markets at once.
In general, no special problems should arise with a competent combination of currency trading and binary options trading. And double profit is always a double pleasure 🙂
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