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International Journal of Entrepreneurial Knowledge

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Binary Options as a Modern Fenomenon of Financial Business

Andrea Kolková
  • Andrea, Kolková, Ing. PhD.; 595228143; Vysoká škola podnikání a práva, a.s., Lucie Lenertová, Ing., Vysoká škola podnikání a práva, a.s.
  • :
/ Lucie Lenertová
  • Andrea, Kolková, Ing. PhD.; 595228143; Vysoká škola podnikání a práva, a.s., Lucie Lenertová, Ing., Vysoká škola podnikání a práva, a.s.
  • :
Published Online: 2016-08-03 | DOI: https://doi.org/10.1515/ijek-2016-0004

Abstract

Binary options are a new instrument of the financial market. The aim of this paper is to analyze the use of binary options with trading and to illustrate this on the practical example of trades based on Bollinger bands indicator. Currency pair EUR/USD and 6912 time series values of this instrument will be put to analysis. The contribution will be evaluated 8 strategies based on Bollinger Bands. There will be used a backtesting method. From the results follows the most trades could have been realized with the use of Bollinger bands with a double deviation. This strategy, however, also showed the greatest percentage of failed trades. On the contrary the fewest transactions could have been carried out with Bollinger bands with a triple deviation and the MACD filter.

Keywords: Binary option; Bollinger bands; backtest; forex

JEL: G 10 CODE

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Published Online: 2016-08-03

Published in Print: 2016-06-01


Citation Information: International Journal of Entrepreneurial Knowledge. Volume 4, Issue 1, Pages 52–59, ISSN (Online) 2336-2960, DOI: https://doi.org/10.1515/ijek-2016-0004, August 2016

© 2016 Andrea Kolková et al., published by De Gruyter Open. This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License. (CC BY-NC-ND 3.0)

Comments (1)

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  • Binary option is also categorized as exotic options that contains fixed risk and reward ratio on the investment. No doubt, it has become a modern phenomenon of financial business to gain profit in short period of time. However, it’s essential to understand how the markets work and how the price movement of asset varies. This is not a difficult task; just explore right resources like I have given and get right information before investing. http://www.judgebinaryoptions.com/Education-Tools

    posted by: Tristan Raines on 2016-10-13 12:03 PM (Europe/Berlin)