Forex hedging binary options

Plain and simple rule of trading: Binary Options are excellent hedging tools in conjunction with conventional Forex positions. Unlike Traditional Forex, Binary Options have two predetermined and fixed outcomes. Unlike Traditional Forex, with Binary Options you can never lose more than your invested amount. There is no need to place Stop-Losses in Binary Options.

Unlike Traditional Forex, Binary Options trading does not require leverage in order to succeed. You can profit without risking a single cent more than your trade amount. As you already have your Stop-Losses on your Traditional Forex positions, you may use your Binary Options trading to hedge against your forex positions without using leverage.

Hedging of My Forex Positions Using Binary Options

Unlike Traditional Forex, with Binary Options you are only trading on the direction the asset will close at expiry, either higher or lower.

Thus allowing you to place your hedge by trading a CALL or PUT for the opposite direction of your traditional Forex position. To hedge, you would simultaneously buy either a PUT or CALL Binary Option, in the opposite direction of your traditional Forex position. What this did is cover your losses or help you even be profitable in the event that your short or long position fails. Looking for More information on 24Option?

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The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author and do not represent the recommendations of DailyForex or its employees. Currency trading on margin involves high risk, and is not suitable for all investors.

As a leveraged product losses are able to exceed initial deposits and capital is at risk. Before deciding to trade Forex or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite.

Easy How To: Use Hedging With Binary Options | Forex Crunch

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