How To Make Money Trading OTC Binary Options on Weekends?
If you have wondered how some people make most of their money trading OTC Binary Options, you’ve come to the right place to learn how to do it the profitable way. What many people do not know about OTC is that it is a totally different ball-game from what you may currently have success with from Monday thru Friday. Please go through to the end of this post because not only will I educate you about OTC, I will also give you a Cheat-Sheet on how you can succeed in trading OTC Binary Options.
If you are not currently having success in trading binary options on weekdays, I highly recommend you to look into my training programs, starting with “Martingale Mastered”, or “Binary Lab Basics”.
What Is OTC Trading?
OTC stands for “Off The Counter”, and the definition of OTC pricing in trading is that these are prices that have no relation or reflect what is happening in the actual market at all.
The forex market is only open when it is manned – i.e. the forex market is open only when people are working. The forex market is open once transactions are made by banks, financial institutions, governments, and major businesses when work starts in New Zealand on Monday, and ends when the last major market, the US, closes on Friday afternoon. So what happens during the weekend?
If you have used a money changer prior or during an overseas trip, have you ever noticed that during the weekend, the buy-sell rates you obtain at a money changer are often worse or much worse than during the week? Between Friday and Monday, “Market Gaps” can occur and they want to ensure that their downsides are covered – by setting their own prices that guarantee profit.
How To Trade OTC Safely?
When you trade OTC, you are trading prices that are set by broker. Obviously, there are dangers to that. So it is very important that you trade with brokers that use a legit algorithm in determining prices.
In my experience, there are generally 2 ways that prices are determined by brokers that offer OTC. Make sure that the broker you trade with doesn’t use the OTC Price Algorithm #1 discussed below.
OTC Price Algorithm #1: Broker Always Wins – Trader Always Loses
This is the same way money changes operate. Brokers who use this type of algorithm ensure that no matter when you click, what price you get, you will always lose. In short, it is daylight robbery! Check out this video below.
In this video below, I compared the Binary Mate OTC platform with the IQ Option platform. Watch how it is in BinaryMate that when I quickly clicked “buy” and “sell” and yet both trades could lose! It completely doesn’t make sense unless the broker is out there to “hunt” you! Click play to watch!
Share this post by clicking the Facebook Like button at the bottom of this post so your friends and relatives can be warned of this dirty trick played by some brokers.
OTC Price Algorithm #2: Broker Determines Price Based on Buyer and Seller Demand
Technically, brokers are not wrong to configure the way their OTC works because it’s off-the-counter. However, if they are just blatantly out to rip you off, like you will see in the video in the previous section, it’s just disgusting! In my opinion, deciding price based on buyer and seller demand is the PROPER way that OTC pricing should be determined.
If more people anticipate a price drop to occur, an imbalance is created between chose clicking “higher” and those clicking “lower”. Everyone wants to click the “lower” option, and thus the only way to restore this balance is to have price go up until more people start clicking “higher”.
Read the above a few times until you figure it out. If I put it very simply, more people clicking “higher”, price goes down. More people clicking “lower”, price goes up.
You can witness that happening in this FB Live video I previously did and re-uploaded to my Youtube. (Follow my FB page here to be able to catch my live videos when they happen)
I feel that more brokers should operate their OTC this way, because by letting people win, they will get more people and trade volume on the weekend, which is a bonus for most broker’s revenue anyway. If brokers only want to scam people like in Algo #1 example in the previous section, who’s going to want to come back a second time?
Good Brokers That Determine Price Based on Buyer and Seller Demands (Algo #2)
As at this time of writing, there are 3 brokers that offer OTC binary options trading which determine their price based on buyer and seller volume.
All 3 of these brokers operate in the same way that I have shown you in the second video on this page.
If you reside in Europe, you can only go with Ayrex. If you live in USA, Canada, UK or Australia, unfortunately there isn’t a broker that you can use that offers LEGIT OTC trading. What I mean to say, is that there are a few other brokers that offer OTC trading, but they are all scams.
[Video] Your OTC Binary Options Cheat-Sheet
Get ready to take some notes, there is alot of valuable information for you to gain and apply on this weekend’s OTC training. In this video, the other “on-screen” demonstration I frequently refer to is the 2nd video on this page, which you probably already watched by now.
In this video, I will be sharing with you how OTC works in the recommended brokers, ideal strategies, when to trade, how much to trade with, the ways to apply your typical chart studies like Bollinger bands and Fibonacci, and much more…
Be sure to have your pen and paper ready to scribble some ideas down! Click to watch the video below!
Ready to get started? Click Here to get a broker account which supports OTC Binary Trading now! Btw, you’re most welcome to demo till you’re ready. Just take note that like what I mentioned in the video, demo trades to not move the market at all. If you use my advices in the video on determining when to trade and how much you should trade with, you will be able to work it out!