Anna Coulling - Binary Options Unmasked

Binary Options Unmasked

Simple instruments with devastating power

Arm yourself with knowledge, before you trade

By Anna Coulling

www.annacoulling.com

Binary Options Unmasked

2014 Anna Coulling - All rights reserved

All rights reserved. No part of this book may be reproduced or transmitted in any form, or by any means, electronic or mechanical, including photocopying, recording, or any information storage and retrieval system, without prior permission of the Author. Your support of Authors rights is appreciated.

Disclaimer

Futures, options, binary options, stocks, bonds, commodities and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to trade in the futures, options, binary options, stocks, bonds, commodities and foreign exchange markets. Never trade with money you cant afford to lose. This publication is neither a solicitation nor an offer to Buy/Sell futures, options, binary options, stocks, bonds, commodities or currencies. The information is for educational purposes only. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in this publication. Past performance of indicators or methodology are not necessarily indicative of future results. The advice and strategies contained in this publication may not be suitable for your situation. You should consult with a professional, where appropriate. The author shall not be liable for any loss of profit, or any other commercial damages including, but not limited to special, incidental, consequential, or other damages.

Who This Book Is For?

If you are even thinking of dipping a toe into the world of binary options, this book is for you. Even more so, if you are a novice or inexperienced trader.

Binary options are some of the most powerful, yet potentially destructive financial instruments to hit the trading world in the last few years. Appearing simple and uncomplicated, they offer the short term speculative trader the opportunity to make money fast, based on simple yes/no propositions. However, beneath this simplicity lies a web of complexity, rarely revealed or explained in detail. For the unwary, there are many hidden dangers, and used in the wrong way they are likely to destroy your capital fast.

If you want to learn how to avoid the pitfalls and traps lurking in this market, this book is for you. Binary options are perfectly valid trading instruments, but you have to understand the risks, and manage those risks accordingly.

What This Book Covers?

Binary Options Unmasked has been written to provide an objective and balanced view on this relatively new trading instrument.

All market instruments carry risk, some more than others, and this is no different with binary options. No speculator or investor should ever invest or speculate in an instrument about which he or she has little or no knowledge. There is no right or wrong way to approach the markets, only the right way for you, and I hope this book will explain all you need to know about binary options. The pros and cons, the risks, and yes, the scams you need to watch out for. Like any new market, it has attracted more than its fair share of the get rich quick merchants, keen to make a fast buck before moving on.

Starting with the probabilities and risks involved in binary options, the book moves on to consider trading techniques to harness their power. These include using volume price analysis, and trading on multiple charts, incorporating both tick charts and more conventional time based charts. From binary options, the book moves forward to binary spreads, which are now becoming increasingly available and explains how to use these in hedging strategies to manage risk.

Each topic and instrument is explained with both charts and schematic illustrations to help you learn more quickly.

If you want to discover more about binary options before entering this market, this is the book for you.

Table of Contents

An introduction to this book which explains who I am, why I wrote this book, and what I hope you will gain from reading it. Binary Options Unmasked is just that. The world of binary options is not all it seems, but if you are prepared to take the time and understand these instruments, it will be time well spent.

Its a complicated world where even the word binary has lost its meaning in the context of these instruments. Here I explain the various profiles of fixed odds, binary probabilities and everything in between as well as the crossover and linkages from sports betting to financial trading.

In this chapter I explain the core differences between a fixed odds proposition, and one based on probabilities. In addition, I also introduce the concept of time which is one of the pivotal principles of trading both binary and vanilla options.

Binary products can be broadly classified as either off exchange or on exchange. In this chapter the world of off exchange brokers is explained, as they are often the starting point for many traders. It is these brokers who are increasingly under the spotlight from the regulatory authorities, alarmed at their proliferation.

On exchange binary options offer a more flexible alternative to the on exchange products. These instruments resemble, and are more akin, to vanilla options both in their construction and also the trading environment.

In this chapter I explore risk and reward ratios, to help explain why most binary option traders struggle to make money. It also explains why an on exchange binary option is such a powerful proposition.

A short introduction to volume price analysis, a trading method I have used for almost twenty years. It is powerful and simple, and once learnt can be applied to any chart in any market, and is the perfect method to analyze intraday charts trading binary options. Using this approach will help you to trade with confidence on any chart from minutes to hours, and from days to weeks.

Volatility lies at the heart of options trading. In this chapter you will discover where and how to interpret volatility quickly and easily, using a variety of tools, indicators and indices.

Here I introduce the most popular binary option products available today. I explain what they are, how they work and how to approach them as traders.

A vanilla option is very different to a binary option. In this chapter I explain the main differences between these two instruments. In particular, I explain the risk and reward profiles of both in more detail, and how these compare when considering the binary option from on exchange brokers.

Regardless of whether you are trading off exchange or on exchange binary options, the starting point is always the same. It starts with the chart, and here I explain the steps to take as you prepare to trade binary options.

In this chapter I walk you through several trading strategies starting with the simple, before moving on to the more complex as I show you how to use a binary option to manage risk in an underlying market. I also explain the mapping of strategies, which is a vital ingredient of trading success in the binary world.

The debate continues as to whether these new instruments are betting or trading. Here I give you my own thoughts, and in reading the book I hope you will be able to form your own opinions, based on a sound knowledge and understanding of these unique and powerful instruments.

I owe a huge debt of gratitude to many people and organizations. In this section you will find a range of free trading resources which I have used throughout the book. These resources include where you can find free live prices and charts for yourself.

Testimonials

Here are just a few of the many email testimonials. If you would like to read more simply visit my Amazon author page which you can find here: