Trading Binary Options has quickly and firmly established itself as the easiest way to invest in the financial markets. Just simple yes or no investment decisions made on an assets’ price direction can generate large returns within minutes, however, with the application of some basic strategy to your trades you can greatly increase your chances of success.
Probably the most sound of all basic strategies a binary options trader can learn is that of the ‘Knock-On Effect’. This theory, sometimes called the Market Pull Strategy, is based on the concept that a movement of a certain option will have an effect – a knock-on effect – on another option. A good example of this is when a country and its currency rely heavily on something – Canada and the Canadian Dollar (CAD) relies heavily on Oil. So when the price of oil goes up – generally the price of the Canadian dollar goes up and vice versa. The Australian Dollar (AUD) and New Zealand Dollar are commodity linked currencies. That means when the value of Gold, Silver and Copper goes up, generally these two currencies tend to go up to.
The quick returns and high yields of binary options are what make this trading vehicle so desirable. While binary options trading is very simple for beginners its also very good for professional who can incorporate trading plans.. The following binary options trading strategies can really boost your profit level and ensure you hold your capital for as long as possible.