CHAPTER 11

Fundamental Trading Strategies with Binary Options

As you may know, the central banks of various countries are always releasing key economic data reports. These reports include unemployment data, gross domestic product (GDP), interest rates, and more.

NEWS RELEASES

Exhibit 11.1 depicts some relevant news releases and the effect they have on the appropriate underlying asset.

EXHIBIT 11.1 Relevant News Releases and Their Effect on the Underlying Asset

This table depicts several important data releases that impact various underlying assets. These news releases have forecasts that economists make prior to the data release.

Exhibit 11.2 is an example of an economic calendar.

If the actual data release is in line with the forecast, the markets will remain fairly stable. However, if the actual news release deviates from the forecast, the markets may move rather quickly and drastically.

EXHIBIT 11.2 Example of an Economic Calendar

c11f002.eps

For example, if the forecast for U.S. jobless claims is 350,000 and the actual number comes up at 360,000, then you can expect that the U.S. dollar will lose value relative to other currencies. This is due to the fact that the jobless claims came ...

Get Binary Options: Strategies for Directional and Volatility Trading now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.