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1. TOP DIGITAL OPTIONS
STRATEGIES
Binary OptionTrades 2016

2. THETWO MAINTACTICS
• In fact, there are two main tactics to make profits
from digital options trading! In the following
SLIDES we explore the most common speculation
and hedging strategies used in digital options
trading today.

3. SPECULATIVE BINARY
OPTIONS STRATEGIES
• Speculative digital options strategies typically consist of a trader
implementing a some sort of technical analysis to pick high
probability binary options entry points.
• Candlestick charts are used pretty extensively in these types of
digital options strategies as they are pretty adept at identifying
short-term trends, something all digital options traders strive for.
• (This is also exactly the method so called trading signal services are
using to determine the trades they suggest to their members!)

4. IMPLEMENTING SPECULATIVE
• When implementing speculative digital options strategies, traders tend to
wait until the last few minutes prior to the lock out period to place a
trade.
• Waiting until the last minute to place the binary options trade minimizes
the amount of time the trader needs to be correct in his/her short term
directional choice.
• Stocks tend to move around a bit and it is very common for trends to
reverse after a few minutes, that's why its a good idea to wait till the last
minute to place your trade, so it becomes a lot easier to determine the
direction correctly.

5. BINARY OPTIONS HEDGING
STRATEGIES
• The hedging binary options strategy can be seen
as the direct opposite.
• While it's very risky to speculate with binary
options, hedgers placing their trades as early as
possible, monitor their trades performance, in
order to choose the right actionplan in order to
minimize their risk and increase their profits.

6. IMPLEMENTING HEDGING
• Purchase a binary call (put) option early in the hour and, if the stock moves in
the correct direction, buy the opposite binary put (call) to lock in a profit zone
and reduce the level of downside risk.
• Buy a binary call (put) option early in the hour and, if the stock moves in the
appropriate direction, purchase another binary call (put) to essentially double the
trade amount.
• Purchase a binary call (put) option, and if the stock moves against them, quickly
purchase the opposite binary put (call).This digital trading strategy essentially locks
in a loss unless the hedger is able to place another trade to create a profit zone.

7. CONCLUSIONS
• Both binary options strategies are used massively by
professional traders.
• Even while the risk is much higher in speculative digital
options strategies, the reward is normally high enough to
make an overal profit from your speculative options trades.
• For those searching for a trading strategy with a minimum
amount of risk, the hedging strategy is the right decision.