Reversal Strategy Archive

1. Understand the underlying asset in which you are purchasing an option. Be familiar with where it trades and anything else likely to influence it. If it’s a stock then will the company be making a financial announcement soon? If it’s an index then look at any political factors which may have a bearing on the country’s currency. 2. Realize that the higher the rate of return of a binary option, the more risk there is involved. The risk must be weighed up against the reward before taking a position on an option.

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