How To Use Holidays In Other Countries To Be A Step Ahead In FOREX Binary Options

Shhh… This is an announcement that most traders are not aware of and because you are, you can profit from it.

On Friday, May 1, 2015, The European Central Bank’s Trans-European Automated Real-time Gross Settlement Express Transfer (TARGET) system will be closed for the Labour Day holiday.

This tends to have a substantial impact on liquidity.

This is a French, German and Italian Bank Holiday that, as a trader, you need to be aware of because it affects the euro and the Swiss franc. This will most likely result in lower volatility with inflated implied volatility (IV) giving some great potential butterfly setups.

To review, a butterfly is the strategy where you place two trades simultaneously on the same binary option. You buy the lower and sell the upper, with the goal of having settlement take place in between your strike prices for maximum profit.

If IV is low, then just a small movement could be profitable allowing for cheap strangles.

A strangle strategy is used when you believe there is going to be movement, but you are not sure which way the market is going to go. It involves buying and selling Out of The Money (OTM) binary contracts on both sides of your trade.

You expect one side to lose.

For a more in-depth look at this strategy, see Strangle? I Would Love To Strangle Something.

Because not many traders are aware of this news event, you have the two ways to take advantage of implied volatility being out of whack. While other traders are wondering what is going on with their charts, you can be placing butterfly or strangle trades.

For more detailed education on trading strategies, visit www.apexinvesting.com.