Hedging Your Binary Options Trades

hedging tradesWhen it comes to a Binary Options trading making many more profitable trades it is often through hedging that this is achieved. Hedging is simply the name given to when a trader places more than one single trade on any company’s share value, commodity or any type of trading opportunity.

Initially a trader will place a trade on their chosen opportunity, however if that trade as it is live is looking more and more likely that is will not be a winning one then that trader will place additional trades on the same option but in the opposite way as the original.

So for example is a trader has a live trade on let’s say the value of oil dropping, however as that trade is live the price of oil is rising he or she will then place another trade whilst that one is live on the price of oil rising over a set time period.

However, one of the ways they will often be funding those hedged trades is by using one of the bonuses that they may have claimed by signing up as a new trader at a Binary Options Broker. By using this type of hedging strategy they are going to end one of their trades in profit having covered both sides of the trade.

In fact as many Brokers occasionally offer their traders a range of no risk trading opportunities should you get one offer at two different Brokers then you can place a trade on both sides of that trade with the no risk trade and one of them will be in profits at expiry time and the one that isn’t will see you getting your invested funds on that trade back from the Broker by virtue of the no risk trade!

Frequently Asked Questions

  1. How Long Will It Take to Learn How To Hedge?

    Do not think that you are going to be able to master the very fine art of hedging Binary Options trades instantly, as it can take a lot of practise and determination in regards to tracking down the very best and ultimate hedging opportunities.

    You are going to be best off placing a range of initial trades via a demo trading account whilst you are learning the art of hedging, as you will be doing so in a no risk trading environment, so any initial mistakes you do make will not be costing you anything.

  2. Can I Hedge Any Type of Trade?

    It doesn’t matter what type of Binary Option trade you are looking to hedge you are going to find plenty of hedging opportunities are available on any type of trade.

    Just remember that the way in which you are going to often get the best value is by you making sure that the price you are being quote and you take for placing a winning trade should be the very best ones on offer, so do shop around to get the best prices possible!

  3. Are Commodities Suitable for Hedging?

    With there being so many different commodities that you can base your Binary Options trades around you may be under the impression those will be the best and most ideals ones to use for when you start hedging your trades, but you may find them perfect for your very first initial hedging trades.

    However, never restrict the range or type of trades you can place by sticking to just Commodities as you will find you can hedge any type of Binary Options trading opportunity and as such you are as likely to have just as much success for example when you hedge company share values and other stocks and shares as you will do by hedging Commodities.

  4. Can US Traders Hedge Trades Easily?

    One question that you may be looking for the answer to if you are one of our US based website visitors is whether you are going to find enough Binary Options Brokers to allow you to have plenty of platforms available to hedge your trades.

    Well fortunately we have quite a number of fully licensed and approved US facing and US trader friendly Binary Options Brokers listed on our website and as such you should have no problems finding several of them at which you can open and account and then start to hedge your trades quickly and easily.