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Trading Binary Options: Strategies and Tactics by Abe Cofnas

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CHAPTER 8

Strategies for Analyzing Event Risks

This chapter provides strategies and methods for evaluating event risks. They require different kinds of evaluation than regular underlying markets. This is one of the reasons they are quite challenging.

One of the most exciting aspects of binary option trading is trading event risks. While the underlying markets react to events all the time, what we mean by event risks is specific economic data releases itself. The Nadex exchange offers several event risks, but jobless claims and the non-farm payroll reports are the event risks that have the most volume and therefore liquidity.

Before one considers trading event risks, it’s important to note the significant difference of the event risk binary option ...

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