When it comes to the investment world, the more you know, the more money you’ll make. Binary options advanced strategies are meant to help you truly understand challenging techniques that will take your trading efforts to the next level. Before you try them out, however, make sure you’ve mastered the beginner and intermediate strategies, as the more advanced techniques build upon those.
The Long Shot Strategy
The good thing about this strategy? You can earn up to 300 percent of your original investment. The bad thing? Your chances of getting it right are lower than with other investments – which means your chances of losing your money are also greater. Simply put, the long-shot strategy involves picking an option that you believe will have an expiration date price either much higher or much lower than its strike price.
In order to make the most profit with this strategy, you must pick an asset where the gap between the predicted price and the strike price are as big as possible. This is a great strategy to use when the market is unstable and huge up and down surges are common – it gives you a chance to earn money when other strategies are risky because it’s hard to predict a firm price.
The Ladder Trading Strategy
The ladder strategy requires investors to predict the rise or fall of an asset based on three increments. Basically, you choose three points that you think your asset will reach from the time you buy it till the time of expiration (meaning, whether the asset will raise or fall at those points). Each of those prices must have its own expiration date as well.
In order to succeed at this strategy, you must be right on all three price point changes. This requires two things: a very good understanding of the market and how a certain asset will behave, and an understanding of how risk assessment can play a role in investment and earnings.
The Boundary Strategy
Of all the advanced strategies, this is probably the easiest to master, as long as you’re willing to spend some time researching your asset and how it behaves in the market.
The key to the boundary strategy is to pick two price boundaries for your asset: the highest and the lowest price point you think your asset could achieve. In order to make money, your asset must expire within those two price points. If your asset is higher or lower at the time of expiration, you lose. This is a great strategy to use on assets that are more predictable and are unlikely to shoot up or fall down considerably within a short period of time.