|Binary Options with Fence Trading|
Fence trading is often called as a collar option which is used when specific market trends are not predicted easily and the charts move in both directions reluctantly. It seems impossible to expect next trends which may be established once in a while. In order to make profits under these difficult conditions in analytics, fence trading method can be very useful for traders.
Remember this one principle; fence trading is setting up a rate range in specific time frame. In other words, you create a virtual range, or two fences, to make your trades. Though it may be a lot harder to make good sums of profits in short time, you'll have an opportunity to make twice the return when you are in the right range and that makes it more profitable than lack of strategies in trading binary options.
2 ways of trading
Recommended usage of fence trading is to make a range that you would predict in shorter period and longer period of time depending on the expiry time.
Let’s say you would like to place a PUT option because you see the trend goes down. However you may think then that the price may go up after the PUT trend. In this case, you also place a CALL option in order to “Close” the range.
2 of the entries will secure your strong predictions in a form of a range so that if the price moves in right directions you will win both PUT and then CALL entries and that makes your profits twice. There is of course a chance to lose both of the trading when each falls in opposite directions.
However, statistics suggests that trading binary options as well as forex with some kind of strategies more likely to make a profit than no apparent ideas in mind. This may be proved when there is half of a second to whether placing CALL or PUT. Fence trading is useful when the markets are volatile and you want to cover your virtual range that you are willing to invest on.