Binary Options -- Contents -- Foreword -- Preface -- Acknowledgments -- Part I Introduction to Binary Options -- Chapter 1 What are Binary Options? -- On What Asset Classes Are Binary Options Available? -- Stock Index Futures -- Commodity Futures -- Spot Forex -- Economic Data Releases -- Binary Options vs. CBOE (Vanilla) Put/Call Options -- Advantages/Disadvantages of Binary Options -- Reasons to Trade Binary Options -- Part II Binary Options Theory -- Chapter 2 What Does Binary Mean? -- Components to a Binary Option -- Strike Price -- Expiration -- Long Trading -- Long In‐the‐Money -- Long Out‐of‐the‐Money -- Long At‐the‐Money -- Short Trading -- Short In‐the‐Money -- Short Out‐of‐the‐Money -- Short At‐the‐Money -- Chapter 3 Pricing -- Strike Price -- Time Value -- Price as a Natural Market Consensus -- Reading a Binary Option Chain -- Part III Trading Binary Options -- Chapter 4 Binary Options Contract Collateral -- Margin and Debit Risk of Vanilla Options and Futures -- Collateral Explained -- Binary Options Expiration Values -- Collateralizing a Long Trade -- In‐the‐Money Long Collateral Example -- Out‐of‐the‐Money Long Collateral Example -- At‐the‐Money Long Trade Collateral Example -- Collateralizing a Short Binary Options Trade -- The Mechanics of a Binary Options Short Trade -- Out‐of‐the‐Money Short Collateral Example -- In‐the‐Money Short Collateral Example -- At‐the‐Money Short Collateral Example -- Chapter 5 Settlement -- Settlement on Binary Option Long Trades -- In‐the‐Money Long Settlement Example -- Out‐of‐the-Money Long Settlement Example -- At‐the‐Money Long Trade Settlement Example -- Settlement on Binary Options Short Trades -- Out‐of‐the-Money Short Settlement Example -- In‐the‐Money Short Settlement Example -- At‐the‐Money Short Settlement Example -- Collateral and Max Profit Summary Table -- Commissions and Fees.

Chapter 6 Entering and Exiting Binary Option Trades -- Reading Quotes -- Reading an Order Ticket -- Exiting Trades -- Commissions for Trade Exit and Settlement -- Exit at Trade Expiration -- Losing at Expiration -- Winning at Expiration -- Exiting Your Trade before Expiration -- Exit to Lock In Profit -- Example 2 (Short Position) -- Exit to Minimize Losses -- Chapter 7 Keys to Trading Binary Options and More Examples -- Gold Binary Examples -- Buy: At‐the‐Money Example -- Sell: Out‐of‐the‐Money Example -- Copper Binary Examples -- Buy: In‐the‐Money Example -- Sell: At‐the‐Money Example -- Part IV Binary Options Trading Strategies -- Chapter 8 Volatility Trading Explained -- Taking a Volatility Long Position (Buying Volatility) -- Long Volatility Example -- Regulating Success Probability and Payout with Strike Prices -- Taking a Volatility Short Position (Selling Volatility) -- Short Volatility Example -- Exit Breakdown -- Regulating Range and Payout with Strike Prices -- Max Loss, Collateral, and Max Profit Summary Table -- Chapter 9 Binary Option Behavior as Expiration Approaches -- Understanding Delta -- 12 Hours to Expiration Example -- 20 Minutes to Expiration Example -- Delta and Price -- Chapter 10 Technical Trading Strategies with Binary Options -- Support and Resistance -- Long Trade Forecasting Where Gold Will Not Trade Based on Support -- Range Trade Example -- Breakout Trading -- Breakout Strangle Trade Example -- Chapter 11 Fundamental Trading Strategies with Binary Options -- News Releases -- Strangle at News Example -- Political Events -- Volatility Short Trade during Instability -- Speculating on Actual News Releases -- Binary Option Trade on an Economic Event -- Economic Data Releases that You Can Speculate On -- Part V Creating Your Binary Options Strategy -- Chapter 12 Systems with Binary Options -- Finding Your Edge.

Proper Trading System Development -- Indicator Colinearity -- System Robustness -- Amount to Back‐Test -- Back-Testing Binary Options Strategies -- Three Back-Testing Rules -- Rule 1: Back‐Test over a Sufficient and a Robust Sample Size of Data -- Rule 2: Do Not Curve Fit -- Rule 3: Progress to Your Live Account -- Chapter 13 Negative Emotions -- Greed and Fear -- How to Handle Negative Emotions -- Find the Right System for You -- More Small Wins and Fewer Big Losses -- More Small Losses and a Few Big Wins -- Practical Steps to Mitigate the Negative Emotions -- Entering Trades -- Exiting Trades -- Out‐of‐the‐Money Binary Option Trade -- Buying an In‐the‐Money Binary Option -- Chapter 14 Risk Management -- The Process -- Determining Position Size -- Trade Example -- Short Binary Options Trade -- Exiting Prior to Expiration -- Risk Management on Option Spreads -- Determining Position Size on Volatility Long Trades -- Determining Position Size on Volatility Short Trades -- Relationship between Position Size and Trading Psychology -- Handling Unexpected Market Volatility -- Benefits of Binary Options on Trading Psychology -- Using Position Size -- Binary Options Scenario -- Out‐of‐the‐Money 1260 Binary Option -- Discipline of Expiration -- Part VI Managing Your Binary Options Account -- Chapter 15 Proactive System Improvement -- System Cutoffs -- Drawdown -- Consecutive Losing Trades -- Reinvestment Rate -- Example 1 -- Example 2 -- Diversification and Account Distribution -- Intersystem Diversification -- Account Breakdown -- Part VII Profiting with Volatility -- Chapter 16 The Volatility Short Trading Rules -- Premium Collection -- Trade Example -- Exit Breakdown -- Rule 1: Cut Off Your Losing Trades -- Cutoff on the Long Leg Potential Breach -- Cutoff on the Short Leg Potential Breach -- 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 -- Support/Resistance Analysis -- Contrarian Analysis -- Rolling Out -- Overall Trend Analysis -- Staggering Into Your Trade -- Rule 7: Attempt to Make Your Market -- Conclusion -- Glossary -- index.