Strategy for binary options with Forex economic indicators

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Trading Forex with Binary Options

Binary options are an alternative way to play the foreign currency (forex) market for traders. Although they are a relatively expensive way to trade forex compared with the leveraged spot forex trading offered by a growing number of brokers, the fact that the maximum potential loss is capped and known in advance is a major advantage of binary options.

Defining Binary Options

Binary options have two outcomes: They settle either at a pre-determined value (generally $100) or at $0. This settlement value depends on whether the price of the asset underlying the binary option is trading above or below the strike price by expiration.

Binary options can be used to speculate on the outcomes of various situations: Will the S&P 500 rise above a certain level by tomorrow or next week? Will this week’s jobless claims be higher than the market expects? Or will the euro or yen decline against the U.S. dollar today?

For example, say gold is trading at $1,195 per troy ounce currently and you are confident that it will be trading above $1,200 later that day. Assume you can buy a binary option on gold trading at or above $1,200 by that day’s close, and this option is trading at $57 (bid)/$60 (offer). You buy the option at $60. If gold closes at or above $1,200, as you had expected, your payout will be $100, which means that your gross gain (before commissions) is $40 or 66.7%. On the other hand, if gold closes below $1,200, you would lose your $60 investment, for a 100% loss.

Binary Option Buyers and Sellers

For the buyer of a binary option, the cost is the price at which the option is trading. For the seller of a binary option, the cost is the difference between 100 and the option price and 100.

From the buyer’s perspective, the price of a binary option can be regarded as the probability that the trade will be successful. Therefore, the higher the binary option price, the greater the perceived probability of the asset price rising above the strike. From the seller’s perspective, the probability is 100 minus the option price.

All binary option contracts are fully collateralized, which means that both sides of a specific contract – the buyer and seller – have to put up capital for their side of the trade. So if a contract is trading at 35, the buyer pays $35, and the seller pays $65 ($100 – $35). This is the maximum risk of the buyer and seller and equals $100 in all cases.

Thus the risk-reward profile for the buyer and seller in this instance can be stated as follows:


  • Maximum risk = $35
  • Maximum reward = $65 ($100 – $35)


  • Maximum risk = $65
  • Maximum reward = $35 ($100 – $65)

Forex Markets

Binary options in forex are available from exchanges such as Nadex, which offers them on the most popular pairs such as USD-CAD, EUR-USD, and USD-JPY, as well as on a number of other widely-traded currency pairs. These options are offered with expirations ranging from intraday to daily and weekly. The tick size on spot forex binaries from Nadex is 1, and the tick value is $1.

The intraday forex binary options offered by Nadex expire hourly, while the daily ones expire at certain set times throughout the day. The weekly binary options expire at 3 P.M. on Friday.

For forex contracts, Nadex calculates the expiration value by taking the midpoint prices of the last 25 trades in the forex market, eliminates the highest five and lowest five prices, and then takes the arithmetic average of the remaining 15 prices.

Best Binary Options Brokers 2020:
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  • Binomo

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Examples of Binary Options in Forex

Let’s use the EUR-USD currency pair to demonstrate how binary options can be used to trade forex. We use a weekly option that will expire at 3 P.M. on Friday, or four days from now (or Monday). Assume the current exchange rate is EUR 1 = USD 1.2440.

Consider the following scenarios:

1. You believe the euro is unlikely to weaken by Friday and should stay above 1.2425. The binary option EUR/USD>1.2425 is quoted at 49.00/55.00. You buy 10 contracts for a total of $550 (excluding commissions). At 3 P.M. on Friday, the euro is trading at USD 1.2450. Your binary option settles at 100, giving you a payout of $1,000. Your gross gain (before taking commissions into account) is $450, or approximately 82%. However, if the euro had closed below 1.2425, you would lose your entire $550 investment, for a 100% loss.

2. You are bearish on the euro and believe it could decline by Friday, say to USD 1.2375. The binary option EUR/USD>1.2375 is quoted at 60.00/66.00. Since you are bearish on the euro, you would sell this option. Your initial cost to sell each binary option contract is, therefore, $40 ($100 – $60). Assume you sell 10 contracts, and receive a total of $400. At 3 P.M. on Friday, let’s say the euro is trading at 1.2400.

Since the euro closed above the strike price of $1.2375 by expiration, you would lose the full $400 or 100% of your investment. What if the euro had closed below 1.2375, as you had expected? In that case, the contract would settle at $100, and you would receive a total of $1,000 for your 10 contracts, for a gain of $600 or 150%.

Additional Basic Strategies

You do not have to wait until contract expiration to realize a gain on your binary option contract. For instance, let’s say by Thursday the euro is trading in the spot market at 1.2455, but you are concerned about the possibility of a decline in the currency if U.S. economic data to be released on Friday are very positive. In this case, your binary option contract (EUR/USD>1.2425), which was quoted at 49.00/55.00 at the time of your purchase, is now at 75/80. Therefore, you could sell the 10 option contracts you had purchased at $55 each, for $75, and book a total profit of $200 (or 36%).

You can also put on a combination trade for lower risk/lower reward. Let’s consider the USD/JPY binary option to illustrate. Assume your view is that volatility in the yen – trading at 118.50 to the dollar – could increase significantly, and it could trade above 119.75 or decline below 117.25 by Friday. You, therefore, buy 10 binary option contracts (USD/JPY>119.75, trading at 29.50/35.50) and also sell 10 binary option contracts (USD/JPY>117.25, trading at 66.50/72.00). Therefore, you pay $35.50 to buy the USD/JPY>119.75 contracts, and $33.50 (i.e., $100 – $66.50) to sell the USD/JPY>117.25 contracts. Your total cost would be $690 ($355 + $335).

Three possible scenarios arise by option expiration at 3 P.M. on Friday:

  1. The yen is trading above 119.75. In this case, the USD/JPY>119.75 contract has a payout of $100, while the USD/JPY>117.25 contract expires worthless. Your total payout is $1,000, for a gain of $310 (or about 45%).
  2. The yen is trading below 117.25.In this case, the USD/JPY>117.25 contract has a payout of $100, while the USD/JPY>119.75 contract expires worthless. Your total payout is $1,000, for a gain of $310 (or about 45%).
  3. The yen is trading between 117.25 and 119.75: In this case, both contracts expire worthlessly and you lose the full $690 investment.

The Bottom Line

Binary options are a useful tool as part of a comprehensive forex trading strategy but have a couple of drawbacks in that the upside is limited even if the asset price spikes up, and a binary option is a derivative product with a finite lifespan (time to expiration).

However, binary options have a number of advantages that make them especially useful in the volatile world of forex. For starters, the risk is limited (even if the asset prices spikes up), the collateral required is quite low, and they can be used even in flat markets that are not volatile. These advantages make forex binary options worthy of consideration for the experienced currency trader.

Indicators for binary options

Indicators for binary options — are technical analysis tools, which are based on historical data and the developed equations allow to predict further behavior of the trend. They determine the strength of the market, signal a trend reversal, help to determine pricing levels, etc. Large part of the simplest indicators inherent in trading platforms and beginners are recommended to use them with the settings set to default values.

How to make money on binary options indicators?

Binary options indicators — are helpers of the trader, which automatically determine the best positions to enter the market. Most often signals are their intersection with the price chart after a certain number of rising or falling candles. Periodically, the indicators need to be revised, since the market situation may change. There are indicators that work well in trending market, some are running on the flat – this feature should also be considered when forming a strategy. Indicators, that are profitable, represent a strategy that could escalate into a trading system

Top brokers

How to make money on the use of binary options indicators:

  • study the principle of operation of the indicator until the formula. Without an understanding of its work the blind use can cause harm. Pay attention on what market situations and on what assets it works best;
  • test binary options indicator on a demo account, the estimated minimum number of winning positions can be calculated according to the formula: 1/(1+x), where x — % of profit in case of successful prediction;
  • try to put several indicators and see which bundle gives the most accurate results;
  • use oscillators – indicators of the signal confirmation, they often help to determine how the signal to buy or sell is strong and what is the direction of the trend;
  • if binary options indicator brings a loss, try to change its settings in different directions and capture the result in Excel table;
  • you should not use many indicators at once, this will reduce the number of entry signals and not really affect their accuracy. Some traders manage to earn using 1 indicator, but the optimal number is considered to be 2-4 indicators.

Another way of earning on the indicators of binary options – free signals from Grosl analysts showing the best moments of positions opening. Grosl is an innovative technologic trading platform with the ability to connect any of the brokers of its list. Grosl research team together with you working to obtain profit by analyzing the market situation through technical indicators and fundamental factors. The accuracy of the signals is up to 85%, 7 days free testing is available. Take advantage of the free opportunity to earn along with Grosl!

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Free Binary Options Indicator for MT4 – Binary Viper v 1.0

Do you use MetaTrader for your technical analysis to support your binary options trading? Charting provided by binary brokers are often not adequate enough for serious price action analysis. If more elaborate charts are offered, you still won’t get the option to save your your own analysis or add indicators to your charts.

There are many benefits in using free MetaTrader software to trade.

For example, you can view multiple charts at the same time and you can create and save your own templates. You can basically configure the entire look and feel of your charts. The most important thing, however, is the possibility to extend the software and add custom indicators.

Binary Options MT4 Indicators

There are thousands of technical indicators and Expert Advisers (EAs can trade automatically) available for MetaTrader 4/5. These technical tools can be programmed and optimized for specific asset, such as EURUSD or GOLD, specific market, or specific time frame.

Many Forex indicators or EAs can also be used to trade binary options. They just need to be tested on and adjusted to help form a winning binary options trading strategy.

What is the right strategy?

The right binary options strategy is basically a winning strategy.

One that is optimized to win as much, and as often, as possible with the least amount of losses.

To learn some trading strategies visit our free strategies section. There are also many good binary options signal providers with winning trading strategies that have proven to work.

But whatever strategy you’ll try to learn, you must make it work for YOU.

In the end, only that matters. Some strategies, however, can work well for some traders, and not very well for others. Ultimately, your strategy must be within your comfort zone.

Keep in mind that a good strategy should include considerations given to your trading habits, eg. time of day you’re trading, assets traded, expiry times, chart set ups, but also sound money management and a lot of self-control.

Introducing Binary Viper

Free Binary options MT4 indicator

This indicator should be used in combination with other indicators. It works on all time frames and all MT4 charts.

The Binary Viper MT4 indicator will give you reversal signals marked with Up/Down arrows. The reversal signals are produced when extreme price levels are reached.

The price levels are calculated by analyzing historical price data and the present price action.

The signals warn of a possible price reversal and upcoming opportunity.

Due to the fact that price levels change and the indicator repaints as it adjusts to new levels, special attention must be given to the next candles that will confirm each reversal.

As this indicator is free to use we do not provide any additional support but we advise to use it with daily and weekly support and resistance levels and candle pattern formations such as the Pin bar.

Get ready for free binary options signals

In addition to visual signals on the charts, sound and popup alerts, the Binary Viper indicator will also give you the option to send free binary options signals to emails and mobiles.

Upon installation, by default, the indicator is configured to run sound and pop up alerts within the MetaTrader 4 and you don’t need to do anything to run them.

However, if you wish you can also configure email alerts and push notifications to your phone in the indicator’s settings. In order for this to work you’ll need to set up your SMTP email account and add your phone number in MT4 options and settings.

See Binary Viper indicator in action

Below is a short video that shows the Binary Viper free mt4 indicator running on 1 minute GBP/USD chart. As you will see the indicator performs well on a 1 minute chart but we don’t recommend using it on short time frames which tend to have a lot of market noise. Using the indicator of 1-hour charts will produce better results. This video is in fast motion that shows in total about 30-minutes of trading time.

Features of Binary Viper v1.0

Here is a full list of the features of Binary Viper, the free binary options indicator for MetaTrader4:

  • Works on all time frames.
  • BUY / SELL signals marked by UP / DOWN arrows (for educational use only!)
  • Can be used on its own or in conjunction with other indicators for additional support
  • Settings can be configured by user (color, alerts, data)
  • Includes sound alertmay be switched off
  • Includes a pop up alertmay be switched off
  • Includes email alertmay be switched off
  • Includes text messagingmay be switched off
  • It’s FREE! – Simply subscribe below and download it for free.

Download Free BinaryViper MT4 indicator

Legal Disclaimer. The BinaryViper MT4 indicator is for educational and entertainment use only. This does not constitute trading or any financial advise. By downloading and installing the indicator you acknowledge that you understand that. Trading binary options involves a very high degree of risk.

Professional indicators for MetaTrader 4

Trend Following MT4 No-Repaint Indicator – Based on Moving Average Crossovers, Average Directional Index and additional filters. Includes free signals and on-screen Smart Display.

MT4 Fibonacci Pin Bar Indicator – Based on price action Pin bar pattern and Fibonacci levels. Includes free signals.

MT4 Price Action Indicator – Based on powerful Pin bar price patterns on manually drawn levels and trend lines. Includes free signals.

Installation of Binary Viper

Always install and use on a demo account. Installing your free mt4 binary options indicator is as easy as installing and running any MT4 indicator. Follow these steps to get started:

  • If you haven’t already install MetaTrader4
  • Go to FileOpen Data Folder
  • Copy and paste or move the downloaded and extracted indicator into MQL4 / Indicators folder
  • Close MetaTrader and the Data Folder too
  • Open MetaTrader again
  • Go to Insert / Indicators / Custom and choose BinaryViper v1.0
  • Your indicator will load onto the screen

Binary Viper trading strategies – How to use this indicator

Although the signals produced by Binary Viper do a pretty good job at indicating when price action is about to change, in trading, no signals or indicators are 100% accurate and fully market-proof.

Because this indicator repaints, not all the signals will be fully accurate and you will find that at times the buy/sell arrows will move with the price action.

Having said that, if you use this indicator wisely and with other indicators, such as the Bollinger Bands (as it’s shown in the video), it will give you a good indication of where the market might be heading.

One thing to add that may serve as additional guidance in using the Binary Viper MT4 indicator, is that all signals must be confirmed by the price action.

In practice, if the indicator shows a DOWN arrow on the price action going up, ideally you should wait until the arrow settles and the next candle confirms the signal. To learn more about how to read price action read 7 Candlestick formations every trader must know.

Please feel free to come back to this page and in public comments share your strategies and results using Binary Viper.

Free indicators vs. paid indicators

Paid indicators offer much more to customers. In addition to a guaranteed customer support, they are rigorously tested and optimized for best performance, and they are often coded for multiple platforms, for example MT4, MT5, NinjaTrader, etc.

Another important aspect of professional indicator is that they are usually designed with more features and possible customizations.

Alternative approach

If you are looking for a more guided approach and want to use the knowledge and timing of a professional trader, then you might benefit from guided live trading sessions.

For those who have enough of setting up and looking all day long at their charts and indicators, and would prefer a simple-to-follow approach to trading binary options, take a look at our Autobinary signals review or click the image below to go directly to their web-based signalling app.

Индикатор Forex MT4 Binary

Стрелочные индикаторы упрощают процесс трейдинга в случае с бинарными опционами, что используется многими участниками рынка. Основное преимущество подобных индикаторов заключается в отсутствии необходимости подробного изучения котировок, чтобы открыть торговую сделку. Надо лишь следить за тем, когда появится стрелка, направленная в ту или иную сторону, что служит сигналом для покупки опциона в соответствии со сделанным выбором.

Стрелочных индикаторов для бинарных опционов существует достаточное количество, но большей популярностью обладает Forex MT4 Binary. В связи с этим остановимся на нюансах практики его применения.

Как работает стрелочный индикатор Forex MT4 Binary

Функционирование предлагаемого индикатора основано на сложном алгоритме, реализация которого – обращение к значительному числу факторов, например, учитывается сила тренда и суть того, как формируются свечные модели. Применение этого инструмента позволяет выявлять с предельной точностью разворотные точки, где происходит смена трендов (локальных, глобальных).

В тех ситуациях, когда появляется подтверждение относительно завершения восходящей тенденции, что соотносится с вероятностью снижения цен в ближайшее время, индикатор подает соответствующие сигналы для бинарных опционов. На графике котировок прорисовывается стрелка, указывающая вниз, а в окне индикатора – красный пик, занимающий положение над нулевым уровнем.

Если нисходящий тренд проявляет себя достаточно долго, а также есть факторы, подтверждающие, что он на исходе, то в окне индикатора можно увидеть пик синего цвета, который находится под нулевым уровнем. При этом на графике возникает стрелка, направленная вверх.

Внимание! Пики, которые можно видеть в окне индикатора, не всегда окрашены в синий или красный цвет. Еще бывают серые варианты такого графического отображения. Их надо игнорировать при входе в рынок, так как эти сигналы не обладают приемлемой надежностью, что подтверждается отзывами трейдеров. Сделки по ним в большей своей части убыточные.

Моментальный сигнал о точке входа

Эффективность применения Forex MT4 Binary связана не только с простотой использования этого индикатора, но и таким моментом, как своевременное оповещение о возникновении сигналов по поводу входа на рынок, что основывается на нескольких способах.

Первый сигнал индикатора – появление стрелки на графике. Если она указывает вниз, то это служит предупреждением вероятности старта медвежьего тренда. Здесь совет один – покупка бинарных опционов PUT. В противном случае, когда формируется стрелка, направленная вверх, ожидаемым событием становится восходящее движение, что предполагает открытие сделки CALL.

При этом доступна настройка индикатора таким образом, что он будет выдавать оповещения, сопровождаемые звуковыми сигналами. Хотя обращение к этому способу вынуждает держать постоянно запущенным терминал МТ4, если трейдер не хочет пропустить такого вида сигналы.

Чтобы не проводить бесконечное время перед монитором ПК, можно обратиться к еще одному способу оповещения, основанному на использование электронной почты. Комфорт такого подхода заключается в том, что информирование о точках входа будет производиться посредством сообщений, отправляемых на email. Их можно прочитать не только с помощью компьютера, но и мобильного устройства – смартфона или планшета.

Выбор интервала и валютной пары

Использование индикатора не зависит от конкретного таймфрейма и финансового актива. Подходит любой вариант, но с одним исключением. Этому инструменту аналитики присущ недостаток, проявляемый также у других технических индикаторов. Чем выше таймфрейм, тем выше надежность сигналов, формируемых индикатором. Например, выбор H4 позволяет закрывать в плюсе 8 сделок из 10. В то же время М1, М5 и другие мелкие таймфреймы ведут к снижению прибыльности до 60–70%.

Наличие такой проблемы никак не связано с работой алгоритма индикатора. Здесь все хорошо. Помехи создают ценовые шумы, возникающие на временных интервалах, отличающихся незначительной длительностью. Ценовые колебания необъяснимого характера приводят к тому, что индикатор выдает неправильные прогнозы, а это способствует закрытию основной массы сделок с убытком.

Используйте индикатор на таймфреймах средней и большой длительности. Количество сделок в этом случае сократится (до 1–2 в сутки по отношению к конкретной валютной паре), но вероятность прибыли существенно возрастет.

Правила риск-менеджмента при торговле с Forex MT4 Binary

Чтобы трейдинг приносил прибыль при использовании рассматриваемого индикатора, надо соблюдать определенные правила:

  1. Обращайте внимание исключительно на сигналы, на основании которых предполагается открытие сделок в направлении тренда. Здесь можно привести пример дневного графика и четырехчасового, когда выбранная валютная пара начинает демонстрировать не просто резкий подъем, а длительный, что должно привести к поиску точки входа в соответствии с длинной позицией при задании таймфреймов меньшей длительности. Что касается сигналов для бинарных опционов, служащих причиной открытия сделок против тренда, то их надо игнорировать.
  2. Эффективность Forex MT4 Binary – факт, подтвержденный многими трейдерами из профессиональной среды, но применение этого индикатора не исключает вероятность прохождения ложных сигналов, следующих друг за другом. В связи с этим не стоит превышать 2% от суммы вашего депозит, когда делается ставка. Это снижает вероятность потери серьезной части используемых средств.
  3. Не следует рассматривать момент перед непосредственным опубликованием новостей с позиции подходящего времени для торговли. Например, на 18:00 назначено заседание членов ФРС, на котором ожидается объявление процентной ставки. В этой ситуации на 15:00 уже должна быть прекращена торговля долларовыми парами.

Объяснение в данном случае заключается в волатильности рынка, которая начинает проявляться еще до того, как соответствующие новости будут оглашены. В результате валютные пары начинают демонстрировать чрезмерную активность и растет число ценовых шумов, что приводит к появлению ошибочных сигналов, способствующих сливу депозита.

Скачать индикатор Forex MT4 Binary

Не можете разобраться как работает эта стратегия или индикатор? Напишите об этом в комментариях к этой статье, а так же подпишитесь на наш YouTube канал WinOptionSignals, где мы обязательно разберем все ваши вопросы на видео.

Best Binary Options Brokers 2020:
  • Binarium

    The Best Binary Options Broker 2020!
    Perfect For Beginners and Middle-Leveled Traders!
    Free Demo Account!
    Free Trading Education!
    Get Your Sign-Up Bonus Now!

  • Binomo

    Good Broker For Experienced Traders!

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