- English
- ePUB (mobile friendly)
- Available on iOS & Android
About This Book
The first comprehensive guide to trading a unique class of options to manage risk and make smarter bets during volatile trading
Providing savvy market players with a way to react quickly to event-driven opportunities and trends, exchange traded binary options are a unique type of derivative instrument offering fixed risk and reward. Available on four asset classesâstock index futures, commodity futures, Spot Forex and economic data releasesâthey are distinctly different from regular put/call options in that their pay-out structure offers only two potential outcomes, or settlement values: 0 or 100. The first guide focussing exclusively on this fast-growing sector of the options market, Trading Binary Options examines the key differences between regular options trading and binary options trading and describes how binary trading is done. It also gives you the lowdown on the most successful binary trading strategies and how and when they should be deployed.
- Outlines a rigorous approach to trading directionally around specific events, such as an earnings release, a shift in currencies, or a release of economic data
- Provides the first comprehensive coverage of an increasingly popular but poorly understood trading instrument
- Offers in-depth discussions of the six characteristics that distinguish binaries from other options and that make them such an attractive vehicle for hedging risk and improving returns
Frequently asked questions
- What are binary options?
- How do binary options differ from traditional options?
- Which underlying instruments are binary options available to trade on?
- Where can you trade binary options?
- What are the benefits of trading binary options?
- What makes binary options unique compared to other instruments and options?
- Wall Street 30 (Dow Futures). Futures based on the Dow Jones Industrial Average (DJIA). The DJIA is a stock index of the 30 largest publicly traded stocks on the New York Stock Exchange (NYSE).
- US 500 (S&P 500 futures). Futures based on the S&P 500, an index made up of 500 large publicly traded companies that trade on either the NYSE or the Nasdaq.
- US Tech 100 (Nasdaq Futures). Futures based on the Nasdaq 100 index. The Nasdaq 100 is an index composed of the 100 largest, most actively traded U.S. companies listed on the Nasdaq stock exchange. The Nasdaq is a stock exchange that is traditionally where many high-tech stocks are traded.
- US SmallCap 2000 (Russell 2000 futures). Futures based on the Russell 2000 index. The Russell 2000 is an index measuring the performance of 2,000 âsmall-capâ publicly traded companies. Small-cap refers to the number of outstanding (owned) shares of a company, and in this case the companies are small.
- FTSE (Liffe FTSE 100 futures). Futures based on the FTSE 100 index. The FTSE 100 index is an index of blue-chip (large companies) stocks on the London Stock Exchange.
- Germany 30 (Eurex Dax futures). Futures based on the DAX 30 index. The DAX 30 is an index of the 30 largest German companies traded on the Frankfurt Stock Exchange.
- Japan 225 (Nikkei 225 futures). Futures based on the Nikkei 225 index. The Nikkei 225 index is made up of Japan's top 225 companies on the Tokyo Stock Exchange.
- Korea 200 (KOSPI 200 futures). Futures based on the KOSPI 200 index, which is made up of the 200 largest companies on the Korean Exchange.
- Crude oil futures. Futures contracts based on current price if you were to buy or sell physical crude oil. Crude oil is the commodity that is used to produce heating oil and gasoline. Crude oil futures have contracts that expire each calendar month.
- Natural gas futures. Futures contracts based on the current price if you were to buy or sell actual natural gas. Natural gas is used to heat homes. Natural gas futures have contracts that expire each calendar month.
- Gold futures. Futures contracts based on the current price if you were to buy or sell physical gold. Physical gold is used to make jewelry and is also used in manufacturing. Gold futures have contracts that expire in February, April, June, August, and December.
- Silver futures. Futures contracts based on current price if you were to buy or sell physical silver. Physical silver is used to make jewelry and is also used in manufacturing. Silver futures have contracts that expire in March, May, July, September, and December.
- Copper futures. Futures contracts based on the current price if you were to buy or sell physical copper. Physical copper is used in electronics, manufacturing, and architecture. Copper futures have contracts that expire in March, May, July, September, and December.
- Corn futures. Futures contracts based on the current price if you were to buy or sell physical corn. For the most part, the corn on which these futures are based is used to feed livestock. Corn futures have contracts that expire in March, May, July, September, and December.
- Soybean futures. Futures contracts based on the current price if you were to buy or sell physical soybeans. Soybeans are turned into cooking oil and flour, and can be used to feed livestock. Soybean futures have contracts that expire in January, March, May, July, August, September, and November.
Table of contents
- Cover Page
- Series
- Title Page
- Copyright
- Dedication
- Foreword
- Preface
- Acknowledgments
- Part I: Introduction to Binary Options
- Part II: Binary Options Theory
- Part III: Trading Binary Options
- Part IV: Binary Options Trading Strategies
- Part V: Creating Your Binary Options Strategy
- Part VI: Managing Your Binary Options Account
- Part VII: Profiting with Volatility
- Glossary
- Index