Table Of Content

Preface Page: vii Acknowledgments Page: ix About the Author Page: xi INTRODUCTION: What Are Binary Options and Why Are They Important? Page: 1 Nadex versus CBOT Binaries Page: 4 Reference Page: 5 CHAPTER 1 Key Features of Binary Option Types Page: 7 Defining the Key Features Page: 8 Strike Price versus Underlying Market Price Page: 9 Currency Pairs as an Underlying Market Page: 11 Moneyness Page: 11 Moneyness and Trader Direction Page: 12 The Role of a Market Maker Page: 14 Are Premiums Fairly Priced? Page: 17 Binary Option Non-Laddered Trading Page: 18 CHAPTER 2 Identifying Profit Return Potential in Binary Option Trading Page: 19 Expected Probabilities Page: 19 Winning Occurrence Analysis Page: 21 Identifying Potential Profits in High-Low Binaries Page: 24 CHAPTER 3 Sentiment Analysis: New Predictive Tools Page: 27 Defining Sentiment Page: 27 Text Mining Mood on the U.S. Dollar Page: 30 Applying Your Own Sentiment Detection When Trading Binaries Page: 33 References Page: 42 CHAPTER 4 Tracking Fundamental Forces That Impact Markets: A Primer for Binary Traders Page: 43 The Fundamental Forces Page: 44 Correlations and Co-Movement Useful for Trading Binary Markets Page: 48 Fear of Deflation/Inflation Page: 56 Foreign Ownership of U.S. Treasuries Page: 59 Crude Oil and the Historic Oil Price Plunge Page: 60 The EUR/USD for Binary Trading Page: 63 Carry Trade and Interest Rate Differentials Page: 63 Central Bankers Move the Markets Page: 65 Checklist for Currency Pairs Page: 65 Bitcoin as a Binary Page: 66 Using an Economic Calendar as Trading Tool Page: 66 CHAPTER 5 Basic Technical Analysis Page: 69 Key Candlestick Patterns Page: 69 Trend Lines Page: 73 Support and Resistance Page: 76 Confirming Strength with Price Break Charts Page: 81 Key Patterns for Trading Analysis Page: 88 Fibonacci Resistance Lines Page: 94 References Page: 96 CHAPTER 6 Advanced Technical Analysis: Volatility Tools Page: 97 Defining Volatility Page: 97 Bollinger Bands Page: 98 VIX: The Fear Index Page: 109 Option Volatility and Sentiment: Put/Call Ratios Page: 115 Volatility Smiles Page: 117 Fear of Recession Page: 123 Tracking Money Supply as an Indicator of Growth Page: 125 Reviewing the Tools Page: 126 Reference Page: 126 CHAPTER 7 Binary Option Trading Strategies Page: 127 The Core Strategies Page: 127 Range Traders Page: 130 Breakout Trades Page: 131 World Events and Binary Trades Page: 131 Russia Invades Ukraine Page: 152 Combination Strategies Page: 159 Part 1, Fundamental Analysis Page: 160 Selecting the Right Underlying Market: Leaderboard Selection Strategies Page: 161 References Page: 162 CHAPTER 8 Analyzing NFP Data for Binary Trading Page: 163 Key Steps Before Trading Nonfarm Payroll and Job Claims Binaries Page: 168 Tactics for Trading NFP Report in Binaries Page: 170 Strategy 2A: Trade at Data Release in a Bullish Direction Page: 171 Strategy 2B: Sell Trade at Data Release Page: 172 Strategy 3A: (Buy) Trade at Fibonacci Points Page: 172 Strategy 3B: (Sell) Trade at Fibonacci Points Page: 173 Timing and Managing Trades During the Week Page: 174 Using Binaries with Forex Trading Page: 176 A Word on Intraday and Intra-Hour Strategies Page: 177 References Page: 177 CHAPTER 9 Risk Management in Theory and Practice Page: 179 Deal or No Deal? Page: 180 The Confidence Index Page: 180 Lot Size Management Page: 181 Offsetting Trades: Failing Forward Page: 182 Leverage and Margin Page: 183 References Page: 183 CHAPTER 10 Metrics for Improving Binary Trading Performance Page: 185 Key Performance Metrics Page: 185 Strategy Scorecard Page: 188 Performance Challenges Page: 189 Performance Challenges for Trading High-Low Binaries Page: 191 Analytical Challenges Page: 191 Know Your Trading Personality Page: 193 Targeting Total Returns Page: 194 CHAPTER 11 Performance Tools and Training for Improving Binary Option Trading Page: 199 Algorithmic Trading: Is It for You? Page: 199 Advantages and Disadvantages of Automated Trading Page: 199 Developing a Trading System Page: 200 Evolving Your Approach Page: 202 Using Alerts Page: 203 Afterword Page: 205 Appendix A: Test Your Knowledge Page: 207 Appendix B: More Training Tools and Tests Page: 217 Index Page: 219 EULA Page: 228

Description:

A clear and practical guide to using binary options to speculate, hedge, and trade

Trading Binary Options is a strategic primer on effectively navigating this fast-growing segment. With clear explanations and a practical perspective, this authoritative guide shows you how binaries work, the strategies that bring out their strengths, how to integrate them into your current strategies, and much more. This updated second edition includes new coverage of Cantor-Fitzgerald binaries, New York Stock Exchange binaries, and how to use binaries to hedge trading, along with expert insight on the markets in which binaries are available. Independent traders and investors will find useful guidance on speculating on price movements or hedging their stock portfolios using these simple, less complex options with potentially substantial impact.

Binary options provide either a fixed payout or nothing at all. While it sounds simple enough, using them effectively requires a more nuanced understanding of how, where, and why they work. This book provides the critical knowledge you need to utilize binary options to optimal effect.

Learn hedging and trading strategies specific to binaries
Choose the markets with best liquidity and lowest expenses
Find the right broker for your particular binary options strategy
Utilize binaries in conjunction with other strategies

Popular in the over-the-counter market, binary options are frequently used to hedge or speculate on commodities, currencies, interest rates, and stock indices. They have become available to retail traders through the Chicago Board Options Exchange and the American Stock Exchange, as well as various online platforms, allowing you the opportunity to add yet another tool to your investing arsenal. Trading Binary Options is the essential resource for traders seeking clear guidance on these appealing options.