Book description
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 classes—stock index futures, commodity futures, Spot Forex and economic data releases—they 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
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
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Chapter 16: The Volatility Short Trading Rules
- PREMIUM COLLECTION
- RULE 1: CUT OFF YOUR LOSING TRADES
- RULE 2: COLLECT ENOUGH PREMIUM
- RULE 3: SELL FAR ENOUGH AWAY FROM MARKET PRICE
- RULE 4: USE UNDERLYING INSTRUMENTS THAT REVERT TO THE MEAN
- RULE 5: SELL OPTIONS WITH PROPER DURATION UNTIL EXPIRATION
- RULE 6: PERFORM ADDITIONAL ANALYSIS IN ORDER TO GET A FEEL FOR MARKET DIRECTION
- RULE 7: ATTEMPT TO MAKE YOUR MARKET
- CONCLUSION
-
Chapter 16: The Volatility Short Trading Rules
- Glossary
- Index
Product information
- Title: Binary Options: Strategies for Directional and Volatility Trading
- Author(s):
- Release date: December 2012
- Publisher(s): Wiley
- ISBN: 9781118407240
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