How does Pairing Binary Options Strategy Work ?

how-does-pairing-binary-options-strategy-work-So far, we have discussed a number of strategies that may be used by both new and experienced binary options traders. These strategies are constantly used by traders, and are fine tuned to the particular trading styles of traders. These strategies sharpen your skills; making you surer about your trading decisions as well as help you lower the risk and increase the profit.
In this blog post, we will discuss one more popular binary option strategy : the pairing binary options strategy. Interestingly, this might be the most excellent binary options strategy, because it suffices a number of functions. This strategy will not only safeguard your gains but it can also double your profits as well as reduce the risk of losing your invested money.

What is the pairing binary options strategy?

In this binary option strategy both the put and call options are purchased simultaneously. This strategy work wonderfully when you are not sure about the outcome and want to protect yourself from incurring huge losses. In case, trade ends at a price which is in between the put and call amounts, you will earn a particular amount of profit. Additionally, in case of a perfect call, you will earn full profit.

How can you use the pairing binary options strategy?

The concept of the strategy is just what its name suggests. Binary options trading is done in pairs, where non-simultaneous or simultaneous trades of opposite directions are made. Depending on the kind, these trades can be made on the same or different assets.

Say, you have chosen a CALL option based on the Sterling/US Dollar currency pair with a time limit of 1 hour. You invest $200 and the opening price is at 1.65.
Now, suppose your trade will expire in 15 minutes and things look quite good with Sterling/US Dollar at 1.69. But, even now you are not very much sure of the results. What if there is an unexpected turn making you lose the trade, leaving you out-of-money.

That is exactly when the pairing binary options strategy proves to be helpful. It is really very simple to use. All you have to do is take out a second PUT binary option by investing the same amount of money, and keeping the same expiry time. By doing this you will have a better range of opportunity for making a profit, from 1.65-1.69. If at during the time of expiry, the price is within the range, you will end up in-the-money with payouts from both options.

Advantages of this binary options strategy

There are mainly three advantages of this strategy. This strategy helps a trader to:

  • Protect profits
  • Minimize the levels of risk
  • Possible double the income

This strategy is one of the best binary options strategies you can use in your trading plan.

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