Martingale on binary options
“Martingale”, “Martin”, “doubling”, sometimes through ignorance and “average” … as soon not call this method of doing their shopping, “management”.
Where it originated, by and large it does not matter. But why martingale on binary options so excites the minds of traders who trade binary options?
Firstly, the use of the martingale on binary options so widely advertised in binary options, only veteran trader who decides to trade binary and do not dare to try to use it. Martingale on binary options advertised as private traders, brokers binary options, “guru” of binary options, so even on forums dedicated to binary options. Even on the forums where people share essentially not devoid of common sense experience, there are proponents of using this method.
Secondly, binary options traders to start trading, expertise on technical or fundamental analysis are simply not needed. You must select the “higher” or “lower” and follow the martingale on binary options.
So what is the best martingale on binary options? It’s simple. This method of binary options trading is that the trader selects the initial bet. For example, this rate will be equal to $ 1. In the case of the result “in the money”, the trader makes a bet of this size again. However, if the option is closed, “not about the money,” the trader subsequent rate increases so much so that in the event of the closure of the option plus the profits from this option has covered previous losses. For a better understanding we give a table.
|Rate (starting 1 $)||% Of payment||Result option|
|2||75||+1.5 (So we cover the loss from the previous option, and earned $ 0.5)|
|Get two in a row option “not about the money,” we have a loss in the amount of $ 3. If we just want to make up for the loss, the next option we buy $ 4. In case the trader wishes, in addition to covering losses, and earn more, then we must increase the rate further. For example, $ 1 (for the amount of the initial bet).|
|5||75||+ 3.75 (thus, covered the loss of $ 3, and earned $ 0.75)|
|12||75||+9 (Covered loss of $ 8 and $ 1 earned)|
|And so on with all sorts of options.|
From the table above it is clear that we remain attached to the original rate. Our goal as often as possible to make a profit from our initial stake and continually overlap resulting loss. Many advocates of the method of martingale on binary options say that binary options, even the most primitive trading strategies or no at all, you rarely receive more than 5 losing trades in a row. Perhaps the truth in their words is, however, the probability of error of 6 or more times there. This is a market, large and small money does not go to sleep. Bulls and bears are beating each other.
Now for the drawbacks of using the method of martingale on binary options:
- Increasing the size of bets. The method of martingale on binary options, alone, is not designed to stop the growth of the size of the bet. That is, starting with $ 1 and getting a losing streak of nine options, the 10th option would cost about $ 1000;
- Chance of draining the deposit. Considering provided in paragraph “1” argument, the risk of total loss of the deposit increased. However, with a good strategy, the risk is reduced accordingly;
Yes, we took only two negative points in the use of the method of martingale on binary options. However, it should refer to the primary goal of every trader – to preserve their capital and money. Therefore, a deposit must be “rubber”, a system that has proved at least by 30-50%.
It is logical to bring the positive aspects of using the method of martingale on binary options:
- Traders do not need to have in-depth expertise on stock trading. That is a beginner can easily master the use of this method;
- If you have a proven strategy, a series of losing trades will be less likely to occur, and as a result, you will be able to make a profit;
- It is believed that the use of this method allows binarschiku learn to “cold” refers to the fact of transactions.
Also, it should be noted that the use of the martingale on binary options generally extended to the turbo option. Yes, indeed, in the pursuit of quick profits unthinkable, people come to it in the pipe options. However, earlier we discussed the strategy “3», in the analysis we have shown the results of combining the martingale on binary options trading and ideas of the author strategy.
In conclusion, we want to note that the use of this method when trading binary options is possible, but if there is a good trading ideas. Yes, perhaps there is a risk of large losses, but no one will prohibit any trading strategy first examine and then calculate how much independent risk you get your trading certain way.
Traditionally, we wish you good luck and new victories!