The binary options trading market is usually in a state of constant fluctuation, with movements in value going up and down due to the fast paced nature of the world that we live in today. However sometimes, the market appears to stablise, appearing to plateau, and at this point, they are referred to as a flat market which is low volatility and will not show either a significant fall or rise over a number of weeks, days or hours.

What are Normal Flats? Binary Options Free Academy

Although in terms of economic recovery a flat market is a good and positive sign, many traditional traders see it negatively. If a market is volatile, it can be simpler to anticipate which would be the correct time to either sell or buy a specific asset, and the market will give signals that indicate to investors when to execute their trades.

These signals are not so obvious in a flat market, which can cause problems for potential binary options traders. Luckily however, even if the market is stabilising, there are still good opportunities for investors in the binary options market. Therefore, if an asset only moves by a very small amount, the investor will still receive their pre-determined profit from executing the trade.

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This allows traders to make a significant return on even tiny moves in value when trading binary options while giving them the added advantage of knowing exactly how much they stand to lose should their prediction be incorrect. If you are interested in trying your hand at binary options trading in a flat market, there are several strategies that you can employ. Also called a Range trade, boundary trading involves opening a chart of a consolidating asset and drawing trend lines across the lows and highs.

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This will show the price going up and down inside the defined channel, with its lower and upper limits defining a range. A third way to profit from a flat market is to try scalping, which is profiting from small price movements.

This is done with 30 second or 60 second binary options. Although it is possible to try this technique with longer term trades, the price has more of an opportunity to make a large move in either direction however in a short term trade, exposure to long term price movements is reduced and the investor is much more likely to make a profit.

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Boundary Trading Also called a Range trade, boundary trading involves opening a chart of a consolidating asset and drawing trend lines across the lows and highs. Scalping A third way to profit from a flat market is to try scalping, which is profiting from small price movements.

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