One Touch Strategy For Big Market Movers

One Touch Strategy For Big Market Movers

Hedging is a strategy that can be used to offset losses while providing you with at least some amount of profit. In binary options, hedging equates to purchasing opposing trades, with some basic math being done beforehand to ensure that the one winning position will cover the cost of the loss and leave some profit behind to go into your account. Below, we’ll discuss how to hedge with Digital Plataform One Touch trades.

Within the Digital Options platform, One Touch trades are available for purchase during the weekend. The profit rates offered on these trades are substantial, a fact that makes it easier to profit from using a hedging strategy. Significant price movement is typically needed in order to profit from these trades, which is why the profit rates are so high, but hedging helps to reduce the risks.

Here’s an example of binary options hedging in action…

Let’s assume that you’ve done your homework and are expecting so serious price movement on the asset you’ve selected throughout the coming week. Maybe you’ve based your assumption on the fact that an earnings report related to your asset is set to be released sometime during the week. These reports can cause substantial price movement and hedging can allow you to account for both upward and downward price movement.

With a potential payout of 350% being offered, you could invest $100 into a prediction of an upward movement touch and $100 into a prediction of a downward moving touch. If either of these trades finish in the money, your account will be credited with $350. Now, we subtract the $200 total investment that went into both trades, leaving you with a net profit of $150. Not too shabby, eh?

There is the risk that neither investment results in profit, so it is beyond important that you feel certain that the asset price is going to cover enough ground for a touch to occur. It helps to be sure to select an asset that is going to receive plenty of attention from investors at some point during the week. Your economic calendar can help point you in the direction of the key economic releases of the upcoming week. Digital Options’s daily market analysis can help with this as well.

Hedging is less risky when used with basic binary options trades, but it can certainly be applied to One Touch trades as well. As previously mentioned, the payout rates on these trades is substantial, making it easy to yield plenty of profit so long as one of the two trades finishes in the money. Keep an eye out for the big movers of the upcoming week and prepare to profit from them.

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General Risk Warning: Trading Binary Options carries a high level of risk and can result in the loss of your investment. As such, Binary Options may not be appropriate for you. You should not invest money that you cannot afford to lose. Before deciding to trade, you should carefully consider your investment objectives, level of experience and risk tolerance. Under no circumstances shall we have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to Binary Options or (b) any direct, indirect, special, consequential or incidental damages whatsoever.
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