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Technical Trading Strategies with Binary Options

Alex Nekritin

DOI: 10.1002/9781118528693.ch10 (Economics, Econometrics and Finance)
Licence : non indiquée (tous droits réservés)

Résumé : You can use binary options to speculate on where an underlying asset will not go. If you think that an underlying asset will not go below a certain price, you simply buy that in-the-money binary option. However, if you think that an underlying asset will not go above a certain price, you simply sell the option with a higher strike price than the market price of the underlying. The wider a range that you speculate an underlying asset will trade in, the lower your payout odds on the trade will be and vice versa. The larger a move that you speculate an underlying asset will make, regardless of direction, the better your payout odds are on the trade and vice versa. Taking all these facts into consideration, we will explore several trading examples.

Publié le 12 Nov. 2012