Trading binary options in flat and volatile markets

As a binary options trader, you have at least two very significant advantages over other forms of trading. The first of these advantages has arrived as a direct result of the popularity of binary options trading becoming one of the fastest and most popular forms of price speculation available. A perfect combination of the sheer simplicity and entirely web-based trading platforms, not to mention the very large profits available, has attracted millions of new and experienced traders to use binary options as their primary trading method. This popularity has been really helpful for traders especially as it has forced binary options brokers to compete ruthlessly against one another to produce some of the most spectacular trading platforms and really excellent trading tools to enhance the potential of profits for their clients. Due to the fact that the market is so competitive, binary options platforms also work exceptionally hard to maintain customer loyalty which provides very positive spin-offs for both new and existing customers.

The second advantage of binary options

The second distinct advantage of binary options trading is the fact that, unlike any other form of trading, it does not rely on the degree of market movement to make it profitable. As ‘all-or-nothing’ options, basic binary options are considered 100% profitable with just a single pip above or below the strike price (entry price). This fact alone has allowed to the creation of hugely innovative trading markets and even more opportunities for binary options traders to make money from trades which simply are not possible with conventional methods without risking vast sums of money. An additional spin-off from this one-pip winning scenario is that there are not even any spreads to worry about with binary options, they simply do not exist. Those sleepy overnight markets which tick up and down just a few points, but have always have too wide a spread to trade, are now just as profitable as, and no more risky than, the active, daytime markets.

Exciting opportunities in boring market conditions

Trading flat, and previously boring, has developed in to a binary options trading specialisation in its own right. This is not only for those traders who cannot access the markets during market hours, perhaps due to work or family commitments, and look for small higher and lower price signals in the flatter markets in order to make up to 85% profit on a single trade. It is also for those actively trading the popular markets throughout peak market time too. Many brokers now offer a range trade option which allows binary options traders to specify the higher and lower price range which they believe price will remain until the expiry of the options. This is an excellent tool for non-trending or flat markets and can also be an excellent way to generate quick profits in the hours leading up to big news releases when markets tend to flat-line out of general indecision.

Volatility is a binary options trader’s best friend

Binary options are also perfectly suited for volatile markets, which can be considered deadly for conventional traders. Due to the fact that binary options do not require a stop-loss, every trader knows the absolute maximum level of loss which will be incurred before the options are even purchased. There is therefore no fear that if markets suddenly move against you, you will be stuck with an alarmingly large losing position or a stop triggered much further away from the purchase price than you originally would have wanted. Without this worry, and the ability for binary options traders to purchase options with an expiry time of just 60 seconds, the once-deadly volatile markets have become prime opportunities for profitable trading.

In addition to this, binary options brokers have introduced an innovative tool called One Touch which lets traders who foresee the markets taking a wild swing in either direction to purchase options at a level higher or lower than the current price. If the price hits this level over the lifetime of the options, they will instantly expire in the money. Furthermore, this tool is not only reserved for intra-day traders but these markets can even be accessed and binary options traded over the weekend through many trading platforms.