Binary options allows short-term traders to gain large profit return in a short time. Even in a matter of five minutes.
One of the advantages of trading binary options is the expiry time can be very low. The more narrow limits of expiry time is in use, then the sooner the profit can be obtained of the trader.
It certainly is good news for short-term traders, especially the scalper who like opening several positions during the day's trading. On the regular forex trading, traders are short term only earn little profit for any trading positions, where the opportunity to enlarge the profit is simply by opening a trading position as much as possible in order to profit from any position can satisfy daily profit target.
Unlike the spot forex, binary options allows short-term traders to gain large profit return even though the duration of trading only last in a matter of minutes.This can occur because the trader can choose their own rate of return and the amount of capital. Rate of return and the amount of capital that can be set in such a way as to limit the losses or maximize profit opportunities.Therefore, it is no wonder if binary options became a favorite place for short term traders.
Each binary options brokers have a minimum expiry time. Provide expiry time 1 minute, in fact there is also a trading position which allows to take place only in a matter of seconds.Although trading is only done in a short time, but that does not mean the way this was done without a strategy. There are many binary options trading strategies that are based on the types of time frames, one of which is a 5-minute strategy.
Trading strategy for 5 minutes in binary options is one of the most high-frequency strategies are good and simple. The main idea of the use of this strategy is to open a trading position at market conditions that allow the occurrence of a short-term reversal. This method is easy to learn if you are still new in the binary options, because it can make it easier for You to do the analysis, whether technical or fundamental. For starters, you can use the chart with the time frame between 1-5 seconds expiry limit, by 5 minutes.
Binary options trading strategies in just 5 minutes has several characteristics, including:
-Very simple and easy to understand beginners.
-Facilitate newcomers to learn the basics of technical analysis and fundamental.
-Very suitable for forex binary options.
-Produce a good trading opportunities, with the percentage of success up to 72%.
-Simply involves a bit of engineering and trading rules.
-Allows a trader to open up to more than 20 position trading to 1 currency pair within a day.
-Trading risk can be minimised by adjusting the amount of capital for each position option.
Trading in 5 minutes With Google News Trading
As with any spot forex, trading binary options trading news with basing the placement option on economic news from countries that are related to the currency pair traded. To be able to analyze price movements are fundamentally, a lot of traders who use economic calendar to find out the times when economic news releases that have an impact on the value of a particular currency. Typically, the data that influence will be marked by bull or 3 star 3, depending on the economic calendar provides site.
Usually, forecast (prediction) on the calendar-economic calendar can make you to open a trading position at the beginning of a trend. But if you only use the expiry time of 5 minutes, it's good if you wait until the data has been completely released, because of the possible outcomes are different from the expectations are always there.
For example, the US NFP which is one of the most important fundamental data for USD achieve results that were worse than expectations. You can immediately put the option "put " for USD/JPY or choosing the option of call " " for the EUR/USD or GBP/USD soon after the release of results, by placing the expiry time 5 minutes.
In other words, trading opportunities today can be taken from the appearance of the fundamental data are:
If the results match expectations of release data:
==>No open position trading.
If the results of the data release is better than expectations:
==>Put option "call " for the pair of currencies the base currency gets his influences from the news. (Example: take option "call " for the EUR/USD after Eurozone inflation data shows better results than expected).
==>Select the on option "put " for the currency pair quote currency unaffected by his news release. (Example: select option "put " for USD/JPY shortly after Japan GDP data reported to reap the gains of better than expectations).
If the results of the data release was worse than expectations:
==>Select the on option "put " for the pair of currencies the base currency suffered its economic data. (Example: select option "put " for GBP/USD after the BOE decided to cut the benchmark interest rate is lower than expectations).
==>Put option "call " for the currency pair quote him affected by the release of the data. (Example: take option "call " for the EUR/USD after the US NFP data reach the results are worse than expected).
The entire position option that can be opened with a set expiry time 5 minutes. This is because in a period of time 2 minutes price has not shown a definite trend, whereas if the option position placed on a trend that has been running for more than 5 minutes, the price can potentially experience a rebound. Therefore, the expiry time is in the top 5 minutes may be more at risk in trading options.In this case, 5 minutes is considered the ideal time for short term traders to place optionnya in accordance with the results of the data that has been released.As long as economic reports that become indicators of major impact, then the way is almost certainly will take You 5 minutes option expires in-the-money.