You will require such a strategy if you determine that the price of the underlying asset of your binary option is rising in value. You should then activate a ‘call’ binary option under these circumstances.
For example, your technical analysis indicates that oil is very likely to increase from its current value of $110 over the short term. You are also aware that you will be entitled to a 78% profit if you open a ‘call’ binary option with OptionRally using oil as its underlying asset. In addition, you also precisely know your risk exposure because if you finish out-of-the-money, you will receive a refund between 10% and 15%.
You next choose to deposit an investment of $1000 and opt for an expiry time of 30 minutes. That is it? These are all the decisions that you have to make. Now, when your expiry time expires and if the price of oil is just $1 higher than your opening or strike value, you will earn a profit of $780 in just 30 minutes.
This is a fantastic return for what appears to be little risk exposure and minimum effort. However, as with any investment decisions you must ensure that you fully understand your objectives and risks before activating any new trades. In this respect, your goals and risks are well-defined as compared to other investment types. In summary, despite all benefits of trading using binary options, you should always work and adhere to a well-developed trading strategy.