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Binary Trading Through The Festive Season

Binary Trading Through The Festive Season

Binary trading invites traders to take and hold a position

, allowing traders to eat, drink and be merry in the holiday season. Binary options can be used to drive traders through the festive period, while capitalizing on the potential and notorious Christmas Rally.

Binary Options offer various expiration periods from intraday and daily expirations through to weekly expirations. The weekly expirations can be utilized by traders holding a position during the festive season. Despite having an expiration period, binary trading also offers traders the ability to adapt to market change by placing and closing orders within the life of the binary trading contract.

The Festive period can at times lead to a market lull. Traders can try and use binary options to re-ignite market lulls. By imposing their own timeframe on specific movements those movements become more engaging and market activity begins to take an interesting twist, catalyzing a looming seasonal respite.

This form of trading also provides a certain level of stability; traders know exactly how much they can lose from the outset. Unlike some derivative products the possible loss for a binary option is fixed, a soothing prospect when leaving the markets for a specific time period. Essentially the trader is able to retain a degree of control over their investment portfolio by limiting some risk using binary options.

Limited risk can extend into hedging other trades using a binary call. For example, if you are trading a put on the market direction of an option moving upwards but it is moving downwards, regular vanilla options present only a few possibilities. These possibilities include doing nothing or closing the option before too much is lost. A binary call can be used in conjunction with this put option. The use of a binary call allows the trader to manage risk when the market moves against the regular option. As for the likelihood of a Christmas Rally we will leave that up to you.

IG Markets has a wide range of binaries available. These binary options are listed on the North American Derivatives Exchange (Nadex) and include binary options on major fx, global stock market indices and commodities.

Futures and Options trading involve significant risk. Please ensure that you understand all risks prior to investing. The material above does not contain (and should not be construed as containing) investment advice or an investment recommendation.

by: dw
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Binary Trading Through The Festive Season Ann Arbor