Binary news trading

Binary news tradingBinary news trading strategies involve taking binary positions around the release of important news events or economic data.
Long Binary Options are ideal for news trading due to their limited downside risk that is known in advance. This can help traders avoid costly slippage on stop loss orders that can occur in volatile post-release markets.
Most binary news trading strategies involve predicting how the underlying market will react to a news event. Popular economic releases to trade binaries around include: employment, inflation, growth and retail sales data, as well as central bank interest rate decisions.
For example, if a binary news trader thinks the market will be surprised by the result of an economic data release, they can purchase an Out Boundary binary covering the event that will payout if the market moves substantially.
Alternatively, if they think the news will be roughly as expected, then they can purchase an In Boundary binary to take the view that the market will remain stable.
Furthermore, if a news trader thinks the outcome will be better than expected for the underlying market, then they could buy an Up Binary. Conversely, they could purchase a Down Binary if they think the observed result will disappoint the market.