Going Long with Binaries
Perhaps the most common of all trading strategies, and one that is often closely associated with binary betting is going long. Going long can be defined as taking a positive perspective on market movements, and looking for patterns and indicators that suggest prices are likely to rise. On this basis, traders buy their binaries in the underlying market on the assumption that the index will rise over the course of the hour, day or week’s duration of the bet, following on from their research and interpretation of market performance.
When going long with binaries, you are backing the proposition that the market will rise, and you are looking to take profits at a rate of 100. Remember that binaries are always settled up or down at 100 or 0 respectively, with the profit portion in this instance lying between 100 and your buy rate, multiplied by the initial stake amount you’ve put down on the transaction.
Of course, some binaries make for more attractive long options than others. The worst kind of binary to back with a long strategy is the one that is priced too highly to represent good value. Binaries quoted in the 90s might represent an almost certain result, but given the volatility of the markets and your potential exposure to risk in this instance (often as much as 90 times your original stake), the rewards may not prove sufficient to tempt your bet.
A far better strategy is to trade on the basis of your own research and interpretation of market figures, including looking at analytical data, to form opinions that look at markets that are moderately likely to rise. Remember that one wrong trade doesn’t matter, so long as you’re collectively in profit at the end of the day, and with strong and well reasoned analysis combined with an understanding of figures and an ability to think smartly about how heavy to trade certain positions, you should be able to identify a sufficient number of profitable trades to make it worth your while.
Going long is a largely positive strategy, and can help narrow the scope of your focus as a binary trader. By understanding your markets and putting in the necessary research work behind the scenes, going long can be a particularly effective and straightforward strategy for establishing yourself as a successful binary trader.