Instructions for trading binary signals using either In the Money, At the Money or Out of the Money binary strikes with Nadex Binary Options are below. All binary signals go out via Twitter. You will receive an email with instructions for following us on twitter once payment is completed. However, please note that no trader should just blindly take signals. Instead, you should confirm the signal using price action or support and resistance. Additionally, trading involves risk and you should never trade with money you cannot afford to lose. The signals can be used in multiple ways for placing trades, including ITM, ATM or OTM trades. How much you risk is dependent on your risk tolerance level.
Trading Binary Signals Using ITM, ATM or OTM Strikes
There are multiple ways for trading binary signals, including In the Money (ITM), At the Money (ATM) and Out of the Money (OTM) strikes. Which one you choose is dependent on your risk tolerance. The ITM strikes have the most risk. The ATM strikes typically have around $50 of risk. The OTM strikes have the least risk (less than $45).
For example, here is a signal based on the underlying Nasdaq market (which is the Nadex US Tech 100 binary option).
NQZ16 identifies the underlying instrument, followed by the direction (buy or sell) at or near the specified price and a minimum expiration time. You decide what you are willing to risk (using either an ITM, ATM, or OTM) and whether you want to build other expirations on the same signal (2 hour, daily, weekly). Since there are so many different types of orders that can be placed, all results are now tracked using the expiration value for the ATM strike, with a risk of $55 and a maximum profit of $45. The red heart signals that, if the signal was entered At the Money (same price where underlying was trading), then it expired in the money using the minimum time expiration given in the signal.
Also, make sure you watch the Managing Binary Options Trades video. In the video, I take three signals that were issued during the Asian session and show you how I manage my trades and use the signals. Every trader has a different level of tolerance for risk but all traders need to remember that their job is essential managing risks versus profits everyday.
Additionally, if you own the TradersHelpDesk indicators, if you have questions I highly suggest coming into the Skype chat room as I am typically in the room off and on during the US market hours. Simply send Gail an email and she will tell you how to join the Skype room.