For our forex binary betting example let’s start by looking at a simple one touch bet for the euro vs dollar currency pair, which is currently trading at 1.2550. The short term outlook is looking bearish for the forex pair, and you therefore feel that 1.25 is a realistic target for the day in the short term, particularly as there some major fundamental news due later in the day which is likely to be good news for the US dollar and send the euro dollar lower as a result.

The one touch binary bet currently being quoted for the euro vs dollar on the day at 1.2500 is 30 – 34, and you decide to buy as you believe this will be achieved. You therefore buy this one touch bet at 34 for £10, with a total risk of £340 ( 34 x 10), and a profit potential of (100 -34) x 10 = £660. Early in the afternoon the news is released and as expected the US dollar strengthens, sending the EUR/USD lower as a result, and through the 1.2500 price, at which point the binary bet closes at 1oo and you win £660. This is how a simple one touch bet works for trading in the forex binary betting, but is equally applicable to all the other financial instruments available.

On many occasions, the forex markets trade in very narrow ranges, particularly when there is little fundamental news on the economic calendar. In this case we would look to a tunnel trading strategy, with the binary bet quoted as two prices, one above and one below. In the event that the currency pair does indeed continue to trade sideways as expected then the bet would close at 100 as a result.

Finally we could ofcourse use the betting strategy outlined for the FTSE 100 index, where we open two bets on the expectation of market volatility on a news announcement. This is an excellent strategy for major news items such as the Non Farm Payroll, which is released in the US on the first Friday of every month, and during which the markets generally experience severe volatility for several hours after the news has been released.