Range options are favorite options for many traders and for me as well. Of course, their main advantage is the high profit. You can earn per transaction as per four deals with the classical options, but in case of range options, the risk is greatly increased. Predicting the exact price of an asset is much more difficult than simply predict its movement. However, there are different range options strategies that can provide you with a steady profit. Someone with a strategy to trade range options buys only the options "in range" of the other binary options trading strategy, which is based only on the purchase of options "out of range." I suggest you consider trading strategy binary options boundary, built on night and day trading.
Range options strategy based on the activity during the trading sessions
We know about London, New York, Tokyo, and Sydney trading sessions, as well as the time of their work and activities of currency pairs during these sessions. This range options strategy is based just on the activity of the currency pairs at the opening of trading sessions. For example, the currency pair EUR/GBP shows the greatest activity during the London trading session, EUR/USD is most active during the crossing of the London and New York sessions, and USD/JPY is the most active when New York and Tokyo trading sessions are crossing.
To make it easier to navigate, I suggest recalling the listing hours of all trading sessions in New York time.
• The London session opens at 3:00 and runs until 12:00;
• The New York session opens at 8:00 and runs until 17:00;
• The Tokyo session opens at 19:00 and runs until 4:00;
• The Sydney trading session opens at 17:00 and runs until 2:00.
London and New York trading sessions overlap between 8:00 and 12:00. Accordingly, at this time, we see the greatest activity on pairs EUR/USD, GBP/USD, USD/CHF, CAD/CHF, EUR/CAD, and GBP/CAD.
Sydney and Tokyo sessions overlap from 19:00 to 2:00. Accordingly, the highest activity is on AUD/JPY.
Tokyo and London sessions overlap from 3:00 to 4:00. Accordingly, in this hour, the greatest activity is on EUR/JPY, GBP/JPY, and CHF/JPY.
If you trade binary options in the morning, it is important to remember when London and New York sessions are opened. At this point, the largest volumes of American and European currencies are traded, the principal amount of news comes out, various events occur, and pairs containing the European and American currencies demonstrate the greatest dynamics. Accordingly, at this time, the chances that the price of the asset will break the range indicated by a broker is at its maximum. Accordingly, it is the best chance to purchase the option "out of range."
For example, we buy option "out of range" of the pair EUR/USD at 8:00, just as the New York Stock Exchange is opening and the London business day is in full swing. All major European reports have been published and events have come to pass, but New York hasn’t had time to respond to them. If you look at the charts of the pairs EUR/USD and GBP/USD, you will see that from 8:00 to 12:00 price dynamics in these pairs increased significantly. So, it’s what we need. To be 100% sure, it’s better to check the economic calendar and determine the trend in the market, then we buy our option "out of range," and in 99% of cases, it will be profitable.
Accordingly, during the day, activity of the Asian currency pair is significantly reduced since their stock exchanges are closed. On the charts of currency pairs like AUD/JPY, EUR/JPY, GBP/JPY, and CHF/JPY, you can see calm. For us, this is the best time to buy "in range." During expiration of our option, the stock exchanges are closed, news is not expected, traders are asleep, and therefore unforeseen rollbacks aren’t expected.
Range options strategy at night is a mirror of day trading. If we start to trade options from 19:00 to 1:00, at this time, Tokyo and Sydney are open. This means that the highest activity is with the pair AUD/NZD. Accordingly, the chances that the pair AUD/NZD will be “out of range” are maximized.
At the same time, the pair EUR/GBP is calm since the European trading session is closed and news and events aren’t expected. Therefore, we can confidently purchase options EUR/GBP "in range."
Range options strategy based on trading sessions is simple. It is based more on logical reasoning and considers the fundamental data. As we know, the fundamental data primary; they make prices move. Therefore, I recommend you try this strategy right now.