One of the more common Binary Options trading strategies which are being promoted in various venues is Binary Options hedging or Binary Options arbitrage. So far in the research I have done on these Binary Options hedging strategies I haven't found them to be accurate depictions of these trading disciplines.
Since Binary Options involves multiple assets with many different ranges of payout rates there are real hedging opportunities. The question becomes whether the effort and returns involved are justified.
I recently came across a "Binary Options Hedging Strategy" that says in two scenarios you will win the trade, but if a third thing happens you will lose your money. In theory strategies such as this can reduce your risk somewhat, but not not enough to be considered a legitimate trading strategy because you are still leaving your the results to chance.
In an arbitraged hedge trade you are taking advantage price quote differences in different markets. In a true arbitrage situation your chances of profiting are pretty much guaranteed. With a hedge trade you are not necessarily guaranteed profit, but are using a hedge position to greatly reduce your potential loss while giving up potential profit as well.
Having said all this I do believe there may be an arbitrage hedge opportunity in the area of Binary Options. If you would like me to elaborate on this potential please let me know.
Update: BinaryArbitrages.com Review
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