Trading the Non-Farm Payrolls News Event with Forex Binary Options
Binary Options are a much more simplified and advantageous way of trading currency pairs than traditional Forex trading. Whether you are a novice Forex trader looking for a more simplified way to succeed or an advanced Forex trader looking for a more profitable Risk/Reward ratio, you need to give Binary Options a try.
This coming Friday one of the most important market news events, the US Non-Farm Payrolls (NFP), is sure to attract Forex traders. One of the best ways to trade this news event is by using Binary Options. As many traders already know, Forex Binary Options such as EURUSD Binary Options, offer a means of trading news events that is much more attractive in these situations than traditional Forex trading.
One advantage that Forex Binary Options offer is a fixed reward of 81% profit, even if you are only 1 pip “in-the-money”, meaning that you chose correctly the direction that the EURUSD is moving and it closed just 1 pip or more in the direction that you choose, at expiration. Another advantage is that expiration, which is the end of every hour, is usually just a few minutes from the news event, so you can be “in-the-money” and get your reward within the time frame of the news event rally. Lastly, Forex Binary Options, besides being a simplified way of trading, also have the advantage of providing a risk-managed way of trading, since the “out-of-the-money” reward is known in advance, so there is no need to guess where to put that elusive stop-loss-point. Every seasoned Forex trader knows how often he gets shaken-out of his trade when his stop-loss is hit. This situation does not exist with Forex Binary Options.
In the example in the chart shown, we traded a news event rally by buying a Put Binary Option immediately after the news event was reported and the rally began at the break of the support line. There was no need to set stop-loss or limit orders as in traditional Forex trading. By the way here are 2 more trade ideas for the NFP: as seen in the chart, you can buy a Call Binary Option when the rally reverses or buy another Put Binary Option when the reversal ends and the trend re-continues.
