Why certainly, Forex binary options are available to everybody. This is the uniqueness of their attractiveness. Yet remember, even though binary options allow for a minimum investment, you should initially start trading with a minimum of at least 200 Euros since trading binary options is financial trading. So as to succeed in this venture, you have two requirements. One is to start trading with enough risk capital. In order to increase the likelihood of success, a successful trader needs to make a minimum number of trades. If the usual trade is 10 Euros with 100 Euros startup, then you are limited to just 10 trades. This may not be enough to succeed initially in trading given the early errors in judgment you will probably make. So consider a minimum of 200 Euros of pure risk capital.
The second component required is that if you want to successfully trade Forex binary options, you’ll most certainly need a Forex binary options strategy. With no well thought out broad strategy in place, you’ll be as an unprepared general before a battle because the financial markets are as intense as a war zone. No strategy means no chance of profits, and you will burn through whatever startup capital you have from 100 to 10,000 Euros.
If you don’t have your own Forex binary options strategy, there are two basic well known possibilities that you may want to give some thought to which are called the non-directional strategy and the reverse strategy. Both of these strategies can assist you to make money. The international, highly diversified, and very liquid Forex market mandates from you focus and clear concentration. It is impossible to trade Forex on emotional bursts or “seat of the pants” bets.
Of the two mentioned strategies, the Reverse strategy is the relatively simpler plan. This technique once learned is a safe plan to learn especially for novice traders. Reverse strategy contemplates market behavior by searching for particular signs that a specific pattern is emerging on up or down price movement trends. Based on this info, Forex binary options traders then receive their signals and draw up trading strategies betting what positions to open and for how long. Seasoned Forex traders know that while these trends cannot be precisely anticipated with regards to timing, there are routine trading events that take place in the Forex market. The routine events usually have a significant effect on currency pairs. The intelligent trader will take “contrarian” investing (reverse positions from the market place ) as he executes patiently waiting for his planned market place events to take place, and then for the currency pair prices to subsequently change from the initial price that he entered the trade with. Contrarian trading implies waiting until currency pair prices have dropped to their lowest level and then purchasing a binary option contract. When the “lowest level” is reached, the price certainly will rise soon, and if you are long the position, then profits will be made. Your biggest risk is that you may have misread the market and entered too soon, but with enough reserve capital, one of your trades will be on the mark.
Non-directional strategy is referred to as range betting. The trader will enter a trade depending upon the present market situation. At the time when the currency pair market is volatile, usually specific currencies suddenly drop in value while different currencies rise dramatically. The Forex traders using the non directional strategy calculates how the existing market conditions could change and what will be possible future value of a given currency. After this analysis, the trader decides to go either long or short, and then waits for more change in the market place before entering the trade. The non-directional Forex binary option strategy usually means purchasing more than one trade simultaneously to counter the effects of high volatility. Both long and short positions on the same currency pair may be purchased. As a more complicated strategy, the trader should execute it after gaining experience e observing the Forex market. The non-directional strategy does present both greater gains and greater losses, and it’s not as simple to master as contrarian trading. Perhaps the safest way to gain experience is with a demo account at a binary option broker.