What is Monthly Binary Options?
Trading is popular today and this is largely due to the fact that there are more and more people who would like to receive income from the Internet. In addition, the network has a lot of information about options trading, reviews and success stories of traders, ratings of brokers. Success in trading is most often influenced by productive strategies and indicators.
Professionals also assign an important role to expiration, one of the basic concepts of options. If you consciously approach the choice of the time of the option, this will allow you to get a stable income, such as, for example, the use of proven oscillators, the basics of money management.
Binary options “Month” is a type of long-term options, the term of which lasts for thirty days, respectively, by setting such a period, you will receive income in 30 days. Long-term options can reach terms from a week (seven days) to several months. Not every modern broker offers such contracts.
Long-term expirations are more suitable for professional traders who have experience in fundamental analysis. The decision is influenced by news, analytics, expert forecasts and publications of economic indicators. And yet, the possibility of long-term trading suggests that the broker appreciates those who seriously work with large capital, such traders who are reliable and solvent.
What time to trade options “Month”
When trading binary options, you can use a time period that is convenient for you, however, for greater efficiency, remember that many factors affect the expiration time: strategies, type of option, etc.
Also, the schedule of the trading day will help you find a convenient and profitable trading time for you:
- The day starts from the eastern hemisphere (02:00-12:00 Moscow time)
- Then the Asian region enters the trade (04:00-13:00 Moscow time)
- The baton is taken by Europe (09:00-17:00 Moscow time)
- The end of the day takes place in the USA (17:00-02:00 Moscow time).
So, the most active period for transactions: 09:00-13:00, 16:00-18:00 Moscow time.
When trading long-term assets, choose the time based on fundamental factors (for example, statements by officials of the European Central Bank, previously known events (announcements of the Apple version), publications of macroeconomic indicators (Nonfarm Payrolls always excites the market) which, depending on the content of the text, directly affect the position of the market. By analyzing the material and anticipating the behavior of the market, you can make decent money.
Advantages of long-term options
- The main advantage is the minimum of risks. It is easier to understand the position of quotes relative to the entry point for a long period (week, month or even year).
- Guarantee of a stable income.
- Forecasting long-term options is easier, the result is more predictable.
- More opportunities and time to study the situation and external factors, carefully prepare and make the right forecast.
- Suitable for those who, when making a decision, rely on complex fundamental analysis, are always aware of events affecting the global economy.
- Suitable for those who are self-confident, act thoughtfully and prudently.
- Suitable for experienced traders who will be able to get a decent income, relying on knowledge of financial markets.
- Suitable for novice traders who would like to learn how to analyze the situation and make the right predictions.
- Suitable for those who are in search of their own trading strategy, improve their strategy and are determined to work seriously with options.
Disadvantages of long-term options
- Long wait for the result of the forecast.
- To participate in such options, you need more money on deposit than with express trading.
- Not suitable for those who would like to receive instant income in the near future.
- Not suitable for those who do not like measured trading, such traders love risk and excitement, they are bored with trading with a long waiting period for the result.
- Not suitable for those who do not know how to analyze the market situation; requires minimal preparation in theory.
Risk management during long-term trading
Rules aimed at reducing losses in long-term trading:
- When making a decision, it is necessary to exclude emotions, use accurate indicators, weigh all the data,
- Check the effectiveness of strategies on a demo account,
- Work only with a reliable broker, study the ratings of brokers,
- Do not put borrowed funds on the auction, because psychologically calmer to work with your capital,
- Pay attention to analytics, in this case it is more important than the trade itself: analyze the market based on monthly data, so you can better see the dynamics of assets, market behavior,
- It is important to keep data (you can in the form of a trader’s diary) with the results of trading, fix profits and expenses, because this will help you see the statistics of the work, adjust it in time,
- It is important to rely on the factors of fundamental analysis and understand what factors affect the currency: it can be the political situation, the consumer price index, the unemployment rate, etc.,
- It is important to rely on the factors of technical analysis, to have proven strategies and oscillators in stock, the data of which will help to make the correct forecast,
- It is important to remember about the data of the weekly charts, which will allow you to predict currency fluctuations, so your forecast decisions will become more reasonable.
Binary Options Strategies “Month”
Elliott wave theory. This theory is part of the complex of knowledge that a trader must master. Its main statement is that the behavior of trade participants is manifested with the help of clearly expressed waves. According to the theory, each socio-economic cycle experiences 8 peaks, and, after a positive peak (1, 3, 5, 7), any indicators, such as the exchange rate, will decrease until a negative peak is reached (2, 4, 6 and 8). So, peak 5 is the most positive, 8 is the most negative, acting as the threshold of the 1st peak of the new cycle. This theory allows you to make an approximate forecast of the dynamics of currencies in both the long and short term.
Functional analysis. It helps to predict the dynamics of the market as accurately as possible. The trader’s task will be to find an economic shift or the prospect of a trend change based on a real analysis of the economy. For this, news, speeches by central bank chairmen, statements by leading companies, and the political situation are used. Such an analysis can bring maximum profit.
Technical analysis. Helps to predict market dynamics based on research on factors and mechanisms affecting pricing. Most traders work with the MetaTrader 4 trading terminal (download). Proponents of the method believe that the price of the asset includes all the events taking place in the world. Like fundamental analysis, this kind of analysis is very subjective. Working with technical analysis, traders use the methods of breakouts of levels, channels, zones and beyond. Thus, the analysis of the situation takes place on the chart, without the use of lagging indicators.
Fundamental and technical analysis. The combination of technical and fundamental analysis is the most optimal way to predict the market. The work involves more factors that can give a complete picture of the market.
Trading by indicators. One of the simple and convenient tactics that allows you to make predictions based on data from indicators and entire trading strategies. This way of working allows you to make money on options, almost without thinking, because everything is done by the system, it remains only to see the necessary signal and open a deal. The peculiarity of indicators, which is important to remember, is that they work on historical data, show what has already happened. And yet, it is risky to use the data of indicators only, because it is risky. Accurate analysis gives great profitability.
Rules for trading binary options “Month”
- Improve yourself, test new tools, try new strategies.
- Consider trading your profession, devoting more time to training and practice.
- Remember about money management, this will help save money on the deposit.
- Do not trade according to the “what if you’re lucky” method.
- For forecasting, use all possible methods: functional and technical analysis, strategy signals .
- Check the effectiveness of your analysis, as well as strategies on a demo account.
- Work only with a reliable broker.
Trading binary options “Month” with the broker Finmax
In order for long-term options trading to bring you maximum profitability, trust your funds and capabilities to a trusted broker Finmax. This terminal is distinguished by a convenient personal account, the availability of the necessary tools for trading, analytics and training, and a large selection of options and expiration dates are also presented for work. To get income, you need to prepare an option, and this will finmaxbo.com take a minimum of time on a convenient platform.
To buy a CALL option in the Finmax terminal, go to the broker’s website finmaxbo.com and prepare the option, indicating: asset type, expiration, rate, quote dynamics forecast: UP, click the “buy” button. It remains to wait for the results of your forecast:
To buy a PCI option in the Finmax terminal, go to the finmaxbo.com broker’s website and prepare the option, indicating: asset type, expiration, rate, quote dynamics forecast: DOWN, click the “buy” button. It remains to wait for the results of your forecast:
Conclusion
Long-term binary options trading (month) is one of the most profitable in trading, thanks to which it is much easier to predict the dynamics of the market and, accordingly, make a profit. Such options are less risky. To get the most out of long-term trading, always follow the news and the reaction of market participants, try new indicators, build your strategy and, when you achieve one goal, always build another.
