Here is the secret to successful binary option trading, and it is really just sitting there in plain sight.
While binary options are most commonly known for the 30, 60 or 120 second options.
The real money is in the “Boundary Option”.
The boundary option trade looks like this:
There are only a few assets that a trader can use the boundary option on; EUR/USD, EUR/JPY, AUD/USD, GBP/USD & Oil.
The trade works like this, Check the economic calendar for a high impact economic event.
High impact events include the US Non Farm Payroll Report, Interest Rate Announcements, Inflation & GDP numbers.
For Oil traders, Wednesday at 10:30am EST, is the Crude Inventories Report which is the major weekly mover of oil prices.
A trader will open a boundary option position on Oil that expires at 10:45 or 11:00, and buy the boundary option that Oil will be outside the boundary or outbound.
This is not a trade strategy based on direction, it is a trade based on price movement!
A trader should always pay close attention to the size of the spread before placing a trade. As we see in the picture above, the range is only 10 pips wide. Most Forex traders would agree that 10 pips is nothing for a major economic announcement. These spreads will change and a trader needs to double check the spread of the boundary option before placing a trade.
Also, do not confuse the “boundary option” with “high / low options”. It is not the same!
Brokers That Offer Boundary OptionsTradorax is a binary options broker using the TechFinancial platform and offers boundary options, see here.