Option Trading Strategies
Bullish Strategy – Binary options and binary options trading Strategy
Binary options trading strategy is applied to trade when the trader uses the different binary options, and makes money by anticipating the price. One needs to do a lot of careful analysis and research before taking the decision of which of the binary options would you base your trading on. This choice calls for a binary options trading strategy to be in place and there are four kinds of strategy that one can adopt, while binary trading. They are
Here we shall discuss about the bullish strategy in a little detail. A strategy is selected only if it works to make you earn high returns on investment and then it is considered to be successful. A successful strategy helps you to achieve the investment goals that you have set for yourself.
Binary options offer a lot of flexibility in such a manner that they are able to complement everyone’s portfolios well. Bullish strategy is the most simple of the binary options trading strategy. When the price trend is moving upwards for the asset, then it is said to be bullish.
This can only be arrived at by analyzing the market in both the ways – fundamentally and technically, and a bullish strategy is applied. If you have an above or a below option type, then you could opt for a call option or an above option, depending on what you have predicted.
We could cite an example which would bring out the bullish strategy clearly. Suppose the price of oil is $ 105, and you predict that the market would head upwards in the next one hour. You could then choose a call contract of $ 1000, or the above option for a span of 30 minutes.
If the anticipation has been correct then within the next 30 minutes, you would realize a profit of $ 800, since the earnings are 80% of the initial investment made which is of $ 1000. Thus when the market is bullish, then you reap very high returns and that too quite fast.