Trading Binary Options

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.

Preface vii Acknowledgments ix About the Author xi Introduction What Are Binary Options and Why Are They Important? 1 Chapter 1 Key Features of Binary Option Types 7 Chapter 2 Identifying Profit Return Potential in Binary Option Trading 19 Chapter 3 Sentiment Analysis: New Predictive Tools 27 Chapter 4 Tracking Fundamental Forces That Impact Markets 43 A Primer for Binary Traders Chapter 5 Basic Technical Analysis 69 Chapter 6 Advanced Technical Analysis: Volatility Tools 97 Chapter 7 Binary Option Trading Strategies 127 Chapter 8 Analyzing NFP Data for Binary Trading 163 Chapter 9 Risk Management in Theory and Practice 179 Chapter 10 Metrics for Improving Binary Trading Performance 185 Chapter 11 Performance Tools and Training for Improving Binary Option Trading 199 Afterword 205 Appendix A: Test Your Knowledge 207 Appendix B: More Training Tools and Tests 217 Index 219