Double Up Strategy For Binary Options Trading: How It Works
Double Up Strategy is newly offered by many binary options brokers. Binary Options is a popular form of trading among all kinds of traders.
There is a constant demand for trading strategies. This strategy is an advanced feature of Binary options. Today, we will discuss the DoubleUp strategy and how this strategy works for Binary traders.
Binary Options offer traders a unique form of trading through a yes/no proposition. There are many advantages of trading binary options. High profits, short trade times, easy setup, and various assets are some of the top reasons.
It is high time to trade binary options because regulatory bodies taking heed of this trading instrument. Countries that have previously restricted are now welcoming binary trading with open hands.
However, first, you need a good, reliable, and trusted broker’s platform to trade binary options. A regulated platform will give you a safe and secure stage for trading.
This includes all the technical analysis you carry out and all the trading features that you use. Double Up strategy is one feature you can use for increased profitability.
Among the different strategies that you use in your binary options, the double-up strategy is the easiest and rewarding. But there is an equal element of risk.
At first, let’s discuss a little bit about trading strategy in brief.
Why Do You Need A Strategy For Binary Options?
Since binary options are all-or-nothing in nature, you either win a big payout or lose your investment. Simplicity doesn’t mean reduced risks.
That being said, having a proper trading strategy will ensure a limited loss. Think of having a trading strategy as a blueprint for trading success.
It lays out exactly what asset to trade and invest how much. You will know exactly when to place the trade and at what expiry time.
You will also know the risks associated with the trade and the ways to manage them. Using a proper strategy, you can read the market and predict when to enter the trade.
Analyzing trends, finding breakouts, determining the support and resistance levels, and using appropriate indicators all fall under strategy creation.
We all know the 80/20 rule in binary options. The fact is that only 20% of the traders make money with binary options while the rest lose money.
What do you think this 20 % of traders do what the rest don’t? The answer is simple; they form an effective trading strategy to save their money from draining.
We always recommend traders to learn binary options trading first from scratch and then focus on strategy formulation before starting live trading.
“Without strategy, execution is aimless. Without execution, strategy is useless.” -Morris Chang
Therefore, form and pick a trading strategy, and then act upon it. You will find yourself drowning in profits.
In this article, we will discuss the double up strategy and the execution process. It is favourable for beginner traders, easy to execute, and profitable.
What is the DoubleUp Strategy?
As the name suggests, this strategy involves doubling up on your profits. And what if we told you, it is possible with the click of a button!
True! it is simple to execute. However, when and for which trades should you execute it is a whole another story.
So what is this double up strategy?
Double Up is nothing but a feature that binary options brokers provide. This feature enables you to double your initial investment with a single click. And at the same time, it will double your profits.
Without having any mathematical degree, you can apply this strategy in your trading. Mainly this strategy will allow you to open another trade after a specific time.
Not all brokers offer this feature and hence not all binary options can avail it. You can check your binary options trading platform for this feature.
It is usually marked as “x2” or something similar to that. It depends from broker to broker.
How It Works - DoubleUp Strategy
With the help of double up strategy, traders usually double their return percentage. This feature can be used in the trades where you are ” in the money”. Moreover, it is wise to use when you have enough funds in your trading account.
In trading platform, there is a window for you to execute the double up move. This usually happens 5-10 minutes before the expiry time of the trade.
After clicking the double up move, the investment amount will instantly increase twice in number. At this point, the return percentage and risk will also be doubled.
For example, you are selecting the EUR/USD pair. After analyzing the market, you predict that the price will go up. So, you have to click the “double-up icon” before the offer times out.
At this point, you can see a new position. If everything goes right as per your prediction, then you will get a double potential payout.
Depending on the market condition, you can either win one contract and lose another, or win and lose both contracts. Remember, binary options trading is an easy process to make money from home.
How To Use the DoubleUp Strategy? Things To Keep In Mind
In this phase, you will get to know when to use this feature and when to avoid it. After losing a binary options trade, your losses are doubled as well.
Therefore, treat this feature as a double-edged sword. You can only use this strategy in one trades that you know you will win.
Before starting the trade, you should wait and check the market movement. If you are sure that the market volatility will remain the same, then you can start trading.
However, with binary options, it is quite hard to predict whether you will win the trade or not. And this is where analyzing the trading charts come into play.
So if you were thinking you could double up on a winning trade just seconds before it ended, you can’t. Brokers are not that naïve. They would go broke if that were the case.
The optimal use of this strategy would be to understand the market. Price charts have wave-like motion. The price keeps falling and rising due to several factors.
However, there are occasions when the price movement is linear in direction. Either up or down. And it tends to stay like that for a short while. You need to analyze when such a situation occurs and avoid them.
Lesser the volatility, the easier it is to predict the market.
The DoubleUp strategy is a great way to increase your trading profits. Where you could have earned $500 as the payout, you end up earning $1000. So, it’s a great feeling when doubling up pays off.
However, it doesn’t mean you should always use it. Especially, when trading assets that you are not too familiar with.
Use indicators and try to analyze the trend before you entering your trade. Only use the double up feature when you are quite certain you have the trade-in your bag.
It is better to earn your usual payout rather than losing twice your initial investment.