Binary Trading Strategies 1 — Questions and Answers
Question 1: In which type of market would you normally employ the Double Touch trade?
- Moderately volatile
- Slightly volatile
- Not volatile
- Intensely volatile (Correct answer)
Correct answer: Intensely volatile
A Double Touch binary option strategy profits if the asset's price touches two predefined price levels (one above and one below) before the contract expires. This strategy is most effective in intensely volatile markets where there is a high probability of significant price movement in both directions. In less volatile conditions, the likelihood of hitting both targets is considerably lower.
Question 2: Which of the following is true about trading via mobile?
- You cannot get the best of the different types when trading via mobile.
- Only major brokers provide fully developed mobile trading apps.
- Mobile trading is not easy.
- Most trading platforms have been designed with mobile device users in mind. (Correct answer)
Correct answer: Most trading platforms have been designed with mobile device users in mind.
In today's digital landscape, mobile accessibility is a key feature for financial services. Consequently, the majority of modern trading platforms, including those for binary options, are developed with a strong focus on mobile device compatibility and user experience. This ensures traders can conveniently access their accounts, execute trades, and monitor markets from smartphones and tablets.
Question 3: Call and Put are the terms given to what?
- Buying or selling an option (Correct answer)
- A type of chart pattern
- The opening and closing of a trade
- A stop-loss order
Correct answer: Buying or selling an option
In binary options, 'Call' and 'Put' are fundamental terms representing the two possible directions of a trade. A Call option is bought when a trader predicts the asset's price will rise above a certain level by expiry, while a Put option is bought when they predict the price will fall below a certain level. These terms define the core action of speculating on price movement.
Binary Trading Strategies 1
In which type of market would you normally employ the Double Touch trade?