Kollar Strategy
This strategy refers to hedging, when two oppositely directed trades are opened (that is, both PUT and CALL options are bought), which allows you to either minimize possible losses (if the forecast for the first transaction is incorrect) or increase winnings.
The technique is great for binary options “one touch” or one touch, which bring from 150 to 380% profit. The Kollar binary strategy is also called a strategy that averages losses and profits. This trading system is popular when the market is stagnant. It also works well when the option could not reach the price indicated for a particular financial instrument.
Features of the strategy
The Collar strategy is great for mitigating risk while buying PCI and CALL options at the same time. Its main task is to cover the premium on the option during binary options trading by selling another type of option, as well as when closing the transaction at zero.
Closing a deal at zeros is to fully cover the losses that are possible if you choose the wrong option. In other words, you will avoid losses, but you will not receive profits. Such results of the transaction are also called free Kollar.
Collar becomes profitable when the amount of income from a correctly guessed option covers the loss from the losing option along with the size of the premium. For example, you purchased a 380% PCI binary option as well as a 220% CALL binary option. If the first option wins, your return is 380%, but since your second option loses, you lose 220%. The net profit received from such a transaction will be 160%. This is a good trading result.
If you reverse this situation and imagine that you won a CALL option, you incur a loss of 160%, which, despite the lack of profit, is better than a 380% loss if you purchase only one incorrectly guessed option. You will be able to independently choose the percentage yield and the ability to operate with the size of the binary option itself.
Benefits of the strategy
- The advantages of this strategy is that, after a thorough analysis, you will be able to establish the probability of price movement in one direction or another. This will help you buy or sell options at a higher price.
- If your predictions still do not come true, for example, in the event of an incident that provokes a sharp price reversal, you will not lose all interest, but only the difference. Such a strategy significantly reduces risks while trading binary options and is great for traders who have recently traded options and are afraid of large losses.
- In general, the strategy favorably averages the risks of losses and profits, acting as a hedging instrument.
Strategy “Collar” at the broker Binomo
In order for your strategy work to be successful, choose a trusted broker based on current ratings. We recommend working in the terminal of a reliable broker Binomo.
Among its advantages: positive feedback from traders, a simple personal account (with transaction history, information about the status of the deposit), a convenient functional terminal equipped with the necessary tools, a mobile platform, training materials, many ways to withdraw earnings, professional support. You can get acquainted with real reviews about the Binomo broker, as well as ask questions to traders here.
A detailed review of the Binomo broker is here.
Go to the official website of the Binomo broker here.
In order to buy a
CALL
option in the Binomo trading terminal, follow these steps by going to the binomo.com website and preparing the option, indicating:
- Type of asset
- Expiration
- The size of the bet
- Forecast of quote movement: UP
- Click the “buy” button and follow the results.
In order to buy
a PCI
option in the Finmax trading terminal, follow these steps by going to the binomo.com website and preparing the option, indicating:
- Type of asset
- Expiration
- The size of the bet
- Forecast of quote movement: DOWN
- Click the “buy” button and follow the results.
Bonuses broker Binomo
The advantage of Binomo is a lot of promotions for every taste, which can be found here. Working on the platform with bonuses, the trader not only gets a good chance of high profits, saves his capital, and can quickly get the most out of trading.
Binomo Weekly Tournament
Weekly tournaments from the official Binomo website are an opportunity to get real money for free. Such tournaments are held on Thursdays, traders with any experience who have a demo account with a broker can participate in them. The main prize, which is awarded to the winner with the highest profit during the tournament, is options worth $150.
Participate in the Binomo tournament
Tagged with: Binary Options Strategy
