Nadex strategy?

taranradig2

Okay so I'm relatively new to binary options but have decided to trade with Nadex being in the US and the ability to close positions early for profit or to limit loss.

Anyway, I thought of some kind of strategy and decided to ask the experts before giving it a try in demo so I don't waste my time. So here's the idea: let's say EUR/USD is at 1.1205 at 8 PM. And I choose to place a limit order to buy at a strike price of 1.1207 for $50, as well as place a limit order to sell at a strike price of 1.1205 for $50. Now let's say they both hit the market price and both get filled. Now I've got two trades going in separate directions for the same risk/reward. Say I come back an hour later, one of them is going to be ITM and one is going to be OTM, and I decide to exit the trade that is OTM and take profit on the one that is ITM or even just let it expire ITM?

Is this a worthwhile strategy or do I not know what I'm talking about? Lol thanks!!

The_Geek_MH

it is a worthwhile strategy but it all comes down to how much your total cost is, and how much your total return is... so long as you are making money the strategy is sound. It also depends on the expiry, just because an option is in the money AT THIS MOMENT doesn't mean it will be at expiry. Also, when an option moves into the money you won't get max return until closure so be sure you are going to make enough to cover the loss on the OTM option.