In my view the best strategy for binary option trading or binary bet trading as it's known in the UK is to trade weekly.

The ability to trade or bet on the outcome of a weekly move in a popular market can be hugely rewarding and relatively easy to do. Rather than trading during the day or even trading on a daily basis why not take a slightly longer view and trade the week.

Simply take a view on the market you like to trade as to whether you expect the market to rise or fall over the week. You will be given a price on a scale of 0 - 100, in this case normally around 50 as the odds for a market to rise or fall are more often than not simply 50 / 50. You don't need to worry about stops or any kind as the amount won and or lost is known in its entirety from the outset of the trade. Even if the market fell over a 1000 points in the week you could only lose the amount agreed normally around 50 times your bet per point.

In the next example we show why you should consider binary options and or binary bets for your trading.

Let's say over the coming week we expect the market to rise and we are quoted a price of 48 and we decide to risk $10 per point. Now if we are correct and the market closes higher on the week we will win 52 times $10 being $520. If we lose and the market closes lower, the maximum we can lose is 48 (the cost of the trade) times $10 being $480.

Now if we adopted the same scenario using spread betting or futures we would need to give the market room to breathe during the week and would most likely place a stop, say 200 points away from entry.

We could only improve on the binary trade above, if and only if, the market closed 52 points higher on the week. In fact we could do a lot worse. For example if the market fell early in the week and our stop was hit using spread betting or futures our loss would be 200 times $10 being $2000. Whereas with the binary trade the trade would remain live and we wouldn't care what the market does in the early part of the week all we are interested in is what the closing price is on the Friday.

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