Trading Binary Options. Strategies and Tactics. Bloomberg Financial

Transcription

1 Brochure More information from Trading Binary Options. Strategies and Tactics. Bloomberg Financial Description: An essential guide to the fast growing area of binary options Long the province of professional traders, binary options are now offered to retail investors through the North American Derivative Exchange (Nadex) and a growing group of online brokerages. Now, with this new book, author Abe Cofnas explains how independent traders and investors can use binary options to speculate on price movements and global events. The great appeal of binary options is that they are less complex than conventional options and provide a simple method to trade based on an opinion of where the market is headed over a certain period of time. Engaging and informative, this reliable guide reveals how binary options work, what are the best binary options trading strategies, and when to use them. - Identifies the various markets in which binaries are available - Offers insights on how binary options allow for opportunities to speculate on the direction of a market and receive a substantial payout - Provides suggestions as to which markets provide the best liquidity and lowest trade execution expenses As the first book solely devoted to this topic, Binary Options will provide retail traders with an authoritative guide to trading this exciting new market. Contents: Foreword xi Preface xiii Acknowledgments xv INTRODUCTION What Are Binary Options and Why Are They Important? 1 Nadex versus CBOT Binaries 4 References 5 CHAPTER 1 Key Features of a Binary Option Contract 7 Defi ning the Key Features 7 Strike Price versus Underlying Market Price 8 Currency Pairs as an Underlying Market 11 Moneyness 11 Moneyness and Trader Direction 12 The Role of a Market Maker 14 Sample Bid Ask at Nadex 17 CHAPTER 2 Profit Opportunities in Binary Option Trading 19

2 Expected Probabilities 19 Winning Occurrence Analysis 23 CHAPTER 3 Sentiment Analysis: The New Predictive Tools 27 Defi ning Sentiment 27 Applying Sentiment Detection Tools 32 References 41 CHAPTER 4 Tracking Economic Forces that Impact Markets 43 The Fundamental Forces 44 Correlations Involving Binary Markets 47 Fear and the U.S. Dollar 52 Foreign Ownership of U.S. Treasuries 58 Crude Oil 59 Implications of Historic Commodity Plunge 60 Carry Trade and Interest Rate Differentials 63 Central Bankers Move the Markets 65 Evaluating Currency Pairs 66 Using an Economic Calendar as Trading Tool 67 CHAPTER 5 Basic Technical Analysis 69 Key Candlestick Patterns 69 Trend Lines 74 Support and Resistance 77 Confi rming Strength with Price Break Charts 82 Key Patterns for Trading Analysis 89 Fibonacci Resistance Lines 94 References 97 CHAPTER 6 Advanced Technical Analysis: Volatility Tools 99 Defi ning Volatility 99

3 Bollinger Bands 100 VIX: The Fear Index 110 Option Volatility and Sentiment: Put/Call Ratios 116 Volatility Smiles 119 Cycles as Trading Tools 124 Reviewing the Tools 126 CHAPTER 7 General Binary Option Trading Strategies 127 Core Strategies 127 Examples for Strategy Selection 129 Combination Strategies 149 References 151 CHAPTER 8 Strategies for Analyzing Event Risks 153 Key Steps in Analyzing Event Risks 157 Putting Strategies and Tactics Together: Timing and Managing Trades 161 Intermarket Uses of Binary Options 163 A Word on Intraday Strategies 164 References 164 CHAPTER 9 Risk Management in Theory and Practice 167 Deal or No Deal? 168 The Confidence Index 168 Lot Size Management 169 Offsetting Trades: Failing Forward 170 Leverage and Margin 171 References 171 CHAPTER 10 Evaluating and Improving Trading Performance 173 Key Performance Metrics 173 Strategy Scorecard 176 Performance Challenges 177

4 Analytical Challenges 179 Know Your Trading Personality 181 Targeting Total Returns 182 CHAPTER 11 Algorithmic Approaches for Binary Option Trading 187 What Is Algorithmic Trading? 187 Advantages and Disadvantages of Automated Trading 187 Developing a Trading System 188 Evolving Your Approach 190 CONCLUSION The Future of Binary Option Trading 193 Appendix A: Test Your Knowledge 195 Appendix B: More Training Tools and Tests 205 Appendix C: Nadex Contract Specifications 207 Appendix D: Examples of Cycles in Binary Option Underlying Markets 215 About the Author 221 Index 223 Ordering: Order Online - Order by Fax - using the form below Order by Post - print the order form below and send to Research and Markets, Guinness Centre, Taylors Lane, Dublin 8, Ireland.

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