Binary Options: Strategies for Directional and Volatility 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. While they have long been used as a powerful hedging instrument by professional traders, binary options are now available to retail investors. Available in four asset classes—stock index futures, commodity futures, spot Forex, and economic data releases—binary options 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 book focusing exclusively on this burgeoning sector of the options market,Binary Optionsis a complete, how-to guide to trading this unique instrument to hedge risk, make smarter bets during volatile trading periods, and for improving overall returns.Writing for experienced options traders, as well as novices—and everyone in between—binary trading expert, Alex Nekitrin:Explores the theory behind binary options as a speculative instrumentDiscusses, in-depth, the six characteristics that distinguish binaries from other options and that make them such an attractive vehicle for hedging risk and improving returnsClearly explains how binary options work and the mechanics of how to trade themShows how to read price quotes and options tickets and how to enter and exit positionsDescribes the markets in which binary options are available and the costs of placing tradesDetails proven binary trading strategies and how and when they should be deployedOutlines a rigorous approach to trading directionally around specific events, such as an earnings release, a shift in currencies, or a release of economic dataSupplies dozens of examples to clarify each concept covered along with skill-building exercisesProvides numerous quizzes that allow you to test your comprehension, each step of the wayIncludes a demo trading account on which to practice and hone your binary trading skillsSupplies novice options traders with a glossary of all relevant trading-related termsProviding the first comprehensive coverage of an increasingly popular, but poorly understood, trading instrument,Binary Optionsis a valuable working resource for traders and investors looking for a safe, relatively inexpensive instrument which, when used correctly, can significantly improve your ability to manage risk and net you substantial returns in every market climate.