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Bearish Strategy PDF Print E-mail
Bearish Strategy - 3.0 out of 5 based on 1 vote

It is always wise to know what your goals are and what you are aiming for before making any kind of decision. It goes the same for financial decisions, and we tell all our users that make sure you know what you want to achieve before getting started with financial instruments. Analysis and strategy that are based on a market can be a big help even with low risk binary options trading.

 

One of the strategies that are simple and commonly used is known as a bearish strategy.  By observing the market with fundamental/technical analysis, you can determine whether the chosen asset will go down or up. If you see that it's going downwards, then you should make use of a bearish strategy. Depending on the data you get at your expiry at above/below option type, you can select "put" option or a "below" option based on your prediction.

 

Let's say you checked your analysis of the EUR/USD  technical charts. You are sure that the market is going downwards very soon, and you witnessed the price of EUR/USD hitting 1.3863, and the payout on EUR/USD options is 75% at your broker,  then you might want to apply a bearish strategy by choosing $1000 put contract with 60 min expiry.

 

If your prediction is correct, and the price of the EUR/USD went up during the session, you will earn 75%.

 


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