The “Boundary” strategy

Many beginners wrongly call the “Boundary” strategy the easiest way to earn. It is worth looking at the statistics though: with trading positions opened at random, the ratio of profit to loss is roughly 3:1. When a forecast does come true, the trader receives at least 23% of the invested amount per option. Three successful options bring 69% in total, yet a single wrong forecast wipes that profit out and leaves a 31% loss. Applied in practice, such tactics gradually drain the deposit.

“Boundary” options really are a promising instrument for steady earnings, but luck is not a plan. It is only an instrument, and using it effectively assumes you have a proven strategy. Such a tactic exists, and everyone should study it before risking real money.

A profitable “Boundary” strategy for binary options

As mentioned above, to make a profit with a “Boundary” option the trader sets a range that the price chart must not leave before expiry. The strategy assumes opening trades during flat periods. Beginners often believe that quiet periods on the currency market happen only at night. That is not the case.

The image below shows how the price chart behaves during a quiet period:

If the currencies you trade are not in demand during the European and American sessions, the chart behaves exactly like this. AUD and NZD are such currencies. When trading opens in the Pacific region, demand for them rises, volatility increases and the chart starts moving. That is why the contract should expire before the Asian session begins (03:00–04:00 Moscow time, depending on the season).

The “Boundary” option type, applied correctly, can bring a monthly profit to anyone. You do not even need advanced trading skills: a week of practice and a grasp of the basics of technical and fundamental analysis are enough. The main obstacle is finding a reliable broker. The company must hold a licence for this kind of business — otherwise there is no guarantee you will receive what you earned.