An essential guide to the fast growing area of binary options Long the province of professional traders, binary options are now offered to retail investorsthrough the North American Derivative Exchange (Nadex) and a growing group ofonline 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 areless 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 insightson 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. ÍNDICE: Foreword Preface Acknowledgments Introduction: What Are Binary Options and Why Are They Important? Nadex versus CBOT Binaries References Chapter1: Key Features of a Binary Option Contract Defining the Key Features Strike Price vs. Underlying Market Price Currency Pairs as an Underlying Market MoneyNess Moneyness and Trader Direction The Role of a Market Maker Sample Bid Ask at Nadex Chapter 2: Profit Opportunities in Binary Option Trading Expected Probabilities Winning Occurrence Analysis Chapter 3: Sentiment Analysis: The New Predictive Tools Defining Sentiment Applying Sentiment Detection Tools References Chapter 4: Tracking Economic Forces that Impact Markets The Fundamental Forces Correlations Involving Binary Markets Fear and the U.S. Dollar Foreign Ownership of U.S. Treasuries Crude Oil Implications of Historic Commodity PlungeCarry Trade and Interest Rate Differentials Central Bankers Move the Markets Evaluating Currency Pairs Using an Economic Calendar as Trading Tool Chapter 5: Basic Technical Analysis Key Candlestick Patterns Trend Lines Support and Resistance Confirming Strength with Price Break Charts Key Patterns for Trading Analysis Fibonacci Resistance Lines References Chapter 6: Advanced Technical Analysis: Volatility Tools Defining Volatility Bollinger Bands VIX: The Fear Index Option Volatility and Sentiment: Put/Call Ratios Volatility Smiles Cycles as Trading Tools Reviewing the Tools Chapter 7: General Binary Option Trading Strategies Core Strategies Examples for Strategy Selection Combination Strategies References Chapter 8: Strategies for Analyzing Event Risks Key Steps in Analyzing Event Risks Putting Strategies and Tactics Together: Timing and Managing Trades Intermarket Uses of Binary Options A Word on Intraday Strategies References Chapter 9: Risk Management in Theory and Practice Deal or No Deal? TheConfidence Index Lot Size Management Offsetting Trades: Failing Forward Leverage and Margin References Chapter 10: Evaluating and Improving Trading Performance Key Performance Metrics Strategy Scorecard Performance Challenges Analytical Challenges Know Your Trading Personality Targeting Total Returns Chapter 11: Algorithmic Approaches for Binary Option Trading What is Algorithmic Trading? Advantages and Disadvantages of Automated Trading Developing a Trading System Evolving Your Approach Conclusion: The Future of Binary Option Trading Appendix A: Test Your Knowledge Appendix B: More Training Tools and Tests AppendixC: Nadex Contract Specifications Appendix D: Examples of Cycles in Binary Option Underlying Markets About the Author Index
- ISBN: 978-0-470-95284-9
- Editorial: John Wiley & Sons
- Encuadernacion: Cartoné
- Páginas: 272
- Fecha Publicación: 16/11/2011
- Nº Volúmenes: 1
- Idioma: Inglés