The Advanced Hedging Strategy is another binary trading strategy that enables the traders to make slow but safe profit by giving them the chance to either enlarge their profits, or reduce the loss by opting for purchasing another Call or Put option in the opposite direction.

In this money management technique, the percentage of loss is reduced to a great extent. This strategy is very popular among traders and they are applying it to the binary trading too to make profit steadily. This technique was actually first used in forex trading and some forex traders hedge their positions using binary options as well.

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Regardless of the broker, you can make your trade successful by hedging. However, you will get good results if you look for brokers who offer huge payouts.

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Some brokers such as TopOption actually offer hedging as a part of their platform. In order to successfully execute a hedging trade, you first need to have a profitable trade open, that you are afraid might end up in a loss.

See the figure below to get a better understanding of how this strategy works. On the image above, I first opened a PUT option. When the price went down by a lot, I was afraid that this would upset bullish traders who would push the price back up. Your email address will not be published.

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