hi and welcome to the binary optionstrading tutorial this is Steve Wise and today we're going to talkabout the binary options hedge with a call and a put position and i just like to remind you that this tutorial and audio content and theslides therein are the property of binaryoptionbroker
and we're distributing this on so follow the guidelines on to usethis tutorial if you want redistributed and just bear in mind the rules andregulations with regarded to using it. all right so with that out of the way let's get started so let's take a look at a couple slidesi've made this first slide is
your basic naked binary option trade and what we've done here is we've takena binary option call on google we'vetaken a two hundred dollar position with a strike price at five seventy seven fifty per share that's what it was at the time i madethis slide in and made this discussion all the numbers all the details of thistrade that we talk about are covered on the website binaryoptionbroker
and you'll find all the information inall the all the percentages and what have you uh. there so if you have any questions about what thenumbers are and what they are meeting where they all came from that's all is going on the website but what i want to talk about in this tutorialis that this kind of position taking a nakedcall
binary option is very risky in it's not the kind of investment that isee as uh. a favorable one for you theinvestor and the reason why i say that is because there's so much downside risk and noprotection if things go awry and that's not the kind of trade iadvocate what i prefer to do
is i'd prefer to pair my binary option with another option either another security another optionanother binary option the underlying security itself maybe i already only underlying securityand i'm trying to make up some profit on that uh. taking advantage of market movementdownside upside what have you
Binary Options Indicator Best Binary Indicators For MT4
Binary Options Indicator From Investoo Hello, traders. Welcome to Binary OptionsStrategy. In this tutorial I'm going to be back testing the Binary Option Indicator broughtto you by Investoo . Remember that if you want to profit from this indicator, all youneed to do is upgrade your membership to a premium membership at Investoo . Now, let's jump to the MT4 platform and let'sback test the signals for scalpers on the 1 and 5minute chart, day traders on the 15and 1hour chart, and for swing traders on the 4hour chart and daily charts.
Now, here's my MT4 platform. As you can see,I already have plugged in the binary indicator in all my charts. I'm going to show you myindicator list, so you can see that I am, in fact, using the Binary Option Indicatorfrom Investoo , okayé Now, this is the onehour EuroUS dollar andthe oneminute AussieCanadian dollar. Okay, now let's start with the Aussie dollarCanadiandollar oneminute chart and let's go through the signals. Now, in this chart we have three signals.As you can see here, the first signal comes when this leg up ends and the down move starts.The signal comes at the beginning of this
candle, so our entry point should be around98.946. If we are trading off the oneminute chart, we want to trade the fiveminute expirationoption. If we can count five candles, one, two, three, four, five candles, the expirationtime is 98.92 which is lower than our entry price. This put option expires inthemoney. Now, here we have at the end of this downmove, and after we base at this support zone, another signal. In this case, this signalto buy call options and as you can see we have the signal at this candle and our entrylevel should be 98.83 and one, two, three, four, five candles later our exit level is98.83 which is higher than our entry point.
This option also expires inthemoney. Right here, we have a third signal, in thiscase, this is a signal to buy our put options and our entry level should be around 98.89,and one, two, three, four, five candles later our option expires well inthemoney. Let's go to the fiveminute US dollarCanadiandollar chart. As you can see here, we have three signals. The first signal comes whenthis flag formation breaks and our entry levels should be around 113.29. If we are tradingoff the 5minute chart, we want to use between the 15 and the 30 minute expiration option.
In this case, whether we used a 15 or 30 minuteexpiration option, you can see that this put option expires inthemoney because afterour entry or after our signal, we never go above the entry level. Now again, after themove down, we get a signal to buy call options. The signal comes at the 113.03 level. If wecount 6 candles for a 30minute expiration option, one, two, three, four, five, six candles,our closing level should be around 113.08 which is higher than our entry level. Thiscall option also expires inthemoney. Right here, we have another signal to buyput options. The entry price is at the beginning of this bullish candle at around 113.11. Ifyou count six candles, one, two, three, four,
five, six candles, this option expires outofthemoney.If we choose to trade the 15minute expiration option, this option will have expired inthemoney,one, two, three. Since we were trading the 30minute expirationoption on both this put option and this call option, we are going to be trading the 30minuteexpiration option on this put option. This option expires outofthemoney, but thisis fine because we have two winners and one loser on the fiveminute chart. We're goingto back test it now on the 15minute chart, EuroUS dollar. Now the first signal comes at this resistancezone and our entry level is exactly at 126.68.