what do you think about event trading?

Hello

I want to trade currency binary options.
There are binary options that expires in 30 mins'

I want to wait for economic news and then see if the actual news is higher than forecast.
As forexfactory say : Usual Effect ( of news )Actual > Forecast = Good for currency;
So I will wait and see if the news forecast was higher than expected ill then buy the currency call option assuming that the price will rise next half hour.
And vice versa.

What do you think?

I think u shud never even try it...most probably it will be a total disaster in ur real account !

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Hi Alon,

Are you able to trade successfully now?

In particular can you do it on short timeframes looking for 15-40 pips at a time?

If you cannot do that then you have already proven that you cannot predict the next short move so you should leave the short timeframe binnaries alone as all you are doing is locking your self into a 1:1 bet with the outcome likely to be a loss.

If you wait for a news event on a short timeframe binary you will miss the good entry point and your reward even if you are right will be minimal so better to use a longer TF. Also better to anticipate the outcome fo the news and its impact and place your bet in advance. Again if you cannot already successfully predict impact and trade news then why wrap it up in a binary.

Binaries are just another type of trade so if you are successful at present then I am not convinced that you would be asking the question, so just be honest with yourself and good luck.


hope that helps...

Yes, you should wait until the news forecast was higher than expected.

binaries are great once you understand the market.

trading spot you have to be aware of volatility, direction, and position size. Your reward= (position size)(distance in the money), You can do this more of a general direction style of trading

while binary options offer

digital High/Low options with different intervals of expiries
boundary options either In or Out
Touch or no touch options
or bull spreads.

there are many strategies you can use to bet on either equity indexes or forex, commodities. i find it useful to compliment my current strategy or to buy "bets" while not losing my current spot position.

Just a few minutes before the FOMC Meeting minutes were announced earlier this week, EUR/USD was around the 1.3335 mark after the price had ranged throughout the London session.

My broker was quoting around 8.0 for the price to touch 1.3370, and 4.0 for the price to touch 1.3290. It seemed surprising that the prices offered would be so low. Even though the One Touch binary expired just an hour after the FOMC minutes were due to be released, it seemed inconceivable that the price wouldn't surge around 35-45 pips in either direction and take out one of the binaries.

As we know the price tanked and took out a number of the other binaries below 1.3290.

I covered both directions and was very pleased with the outcome. :-)