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Indicators to trade binary options successfully
Many financial markets will move in reaction to this number; but perhaps the biggest mover will be currency pairs of the U. Today we will look at an example of how this event can be traded on the U. Binary options trading is a fast growing movement that is an alternative to traditional currency trading, giving traders multiple ways to profit from market moves. Some traders may favor straddles as a popular strategy in order to take a bullish and bearish position simultaneously, looking for an extreme move.
Rather than looking at a straddle in which both the bullish and bearish legs are traded on the same pair, today we will look at a more creative way to place a straddle, looking at stronger and weaker pairs in an effort to increase the possibilities of success.
Given this, in our example, we will anticipate a stronger dollar to do better against the yen and a weaker dollar to fare poorly against the Aussie in response to the NFP release.
If the dollar weakens, then the AUD should rise. Please note this is not an endorsement of any specific strategy or market opinion, but rather an illustration of the flexibility and creativity possible with binary trading.
If you see the market differently, there are multiple ways to trade an alternate view. Davin Blythe FairValue Trader has been a full time options trader since and has actively traded binary options since The information contained above may have been prepared by independent third parties contracted by Nadex. In addition to the disclaimer below, the material on this page is for informational and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument on Nadex or elsewhere.
Please note, exchange fees may not be included in all examples provided. View the current Nadex fee schedule. Nadex accepts no responsibility for any use that may be made of these comments and for any consequences that result.
No representations or warranties are given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk and any trading decisions that you make are solely your responsibility. Trading on Nadex involves financial risk and may not be appropriate for all investors. Past performance is not necessarily indicative of future results. Nadex contracts are based on underlying asset classes including forex, stock index futures, commodity futures, cryptocurrencies, and economic events.
Trading can be volatile and investors risk losing their investment on any given transaction. However, the design of Nadex contracts ensures investors cannot lose more than the cost to enter the transaction. Nadex is subject to U. Fill out our online application in just a few minutes.
Among other items, analysts look at the non-farm payroll number as well as some secondary figures such as wage growth in order to determine the overall health of employment matters. Exchange fees not included in calculations.
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