Table of Contents

About the Author.......................................................................3

The Binary Institute....................................................................4

Chapter 1:
Introduction to Trading .............................................................5

Chapter 2:
Binary Options Trading Vs. Traditional Retail Trading..............11

Chapter 3:
Trading Times............................................................................16

Chapter 4:
Market Analysis.........................................................................21

Chapter 5:
Technical Analysis.....................................................................26

Chapter 6:
Fundamental Analysis............................................................ ..32

Chapter 7:
Trading on a Binary Options Platform..................................... ..37
The Binary Institute — Introductory Course in Binary Options Aedan Kelly

About the Author

Aedan Kelly is a professional day trader
with over six years of trading experience,
with three years of binary options trading
experience. Until 2014, Aedan worked full-
time as trainer in for an HR firm, specializing
in new employee education and integration.
Aedan brings his skills as a professional
trainer AND trader to the Binary Institute to
makes each lesson accessible to every type
of trader.

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The Binary Institute — Introductory Course in Binary Options Aedan Kelly

The Binary Institute

Welcome to the Binary Institute’s Introduction to Binary Options Trading E-book.
With this introductory guide, we will take you through all of the basics of binary
options trading that you must know in order to begin trading binary options on
your own. Once you’ve finished reading the next 47 pages, you too will be able to
start trading and profiting from binary options trades.

Over the next seven chapters, we will introduce you to the history of trading and
specifically trading binary options. We’ll explain the differences between binary
options trading and other trading formats. We’ll discuss the best times to trade,
the different ways we analyse price movements in the market, such as technical
and fundamental analysis, and we’ll even show you how to trade binary options
on a trading platform.

This E-book is designed specifically for traders with no previous trading experience,
but is equally useful for experienced traders who are looking to brush up on their
trading knowledge. Each chapter of this book will be dedicated to a single topic
that will teach you the basic information that you need to know before progressing
to the next chapter and new topic. Upon completion of this course, you will have
better understanding of the world of trading, specifically binary options.

You also can visit The Binary Institute website, where you can access our
various courses for more detailed information to guide you through trading.
Just visit www.the-binary-institute.com for more information.

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The Binary Institute — Introductory Course in Binary Options Aedan Kelly

Chapter 1:

Introduction to Trading
If we look back at history, we can see that trading initially started as a form of
bartering, where people would exchange one particular good or service with
another person for another good or service. Over time, people began to dedicate
themselves to a particular craft or career and needed a place where they could
exchange and trade---a marketplace.

Over time, we eventually shifted from trading strictly one good or service for
another good or service out of necessity. For example, 5,000 years ago I may have
wanted to buy your cow, however, I might not have had anything of equivalent
value to offer you that you may have wanted. So, people began to seek out other
ways of payment in order to facilitate the purchase of things they needed—some
kind of currency.

Initially, people began to use precious stones and metals that were of different
values. Eventually, we began to create coins and paper money that would be
recognised in our region and could be used to purchase anything that we would
need or want. Even today, we see the constant progress in the way we pay for
things. While we still use paper money and coins today, we have many other
ways that we can pay, whether they be credit or debit cards.

Now, man has always recognised the need to monitor and regulate the exchange
of money. Even in biblical times, there were money lenders who created the basic
structure for the exchange of monies and determined the value of each currency
against another. As people exchanged
money, these lenders would charge a
Money Leaders commission fee and begin to earn a profit on
this exchange. Overtime, this responsibility
became a key function of banks.

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The Binary Institute — Introductory Course in Binary Options Aedan Kelly

It is important to point out that the exchange of monies has always been extremely
important and attractive to people around the world; however, it has not only been
currencies or precious metals or stones that have been traded. The idea of stocks,
or the ownership of a portion of a company or organisation, has also been around
for thousands of years, presumably as far back as Roman times. As organisations
were formed, the owner(s) of the company would either sell a portion of the
ownership to others in order to ease any financial hardship that was required to
operate the business. This obviously was beneficial to these “stock holders” as
they would now also be able to earn a percentage of the profits that the company
earned as well.

As economies grew over time, more and more people became interested in buying
and selling stocks of companies and they too needed a marketplace to facilitate
these transactions. The idea of a “stock exchange” was born and we could see
these exchanges pop up as early as the 1500’s. The major global stock exchanges,
however, really didn’t start to develop until the 18th century, with the London
Stock Exchange in 1773 and almost 20 years later the New York Stock Exchange.
These were the physical exchanges where brokers would facilitate the buying and
selling of companies’ stocks and these two exchanges began to grow in size and
power quickly after their inception.

From here, trading rapidly developed and in the last century and today you can trade
almost anything imaginable. Obviously, there are traders who trade currencies or
the exchange of those currencies, which is the domain most commonly referred
to as foreign exchange or FOREX. There are other traders who trade commodities,
such as gold, silver, oil, wheat, or oranges. Stock trading has always been popular
and is usually the form of trading that comes to mind when people think of trading.

Over time, more financial products became available to trade, one of them being
an INDEX. An index was a financial tool that was developed to measure the overall
strength of a particular market. The index itself was a list of stocks in a particular
country that were weighed to give an average of the strength of that market. As
the value of each of the stocks listed on the index would increase or decrease, the
overall score of that index would move up or down as well.
Some of the major indices that one hears about today are the Dow Jones, the

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The Binary Institute — Introductory Course in Binary Options Aedan Kelly

NASDAQ, the S&P 500, which are all American indices which have a different
number of stocks listed on them. Other indices that are important are the FTSE
100, the U.K.’s major index, the CAC 40 (France), the Heng Seng (Hong Kong),
Nikkei 224 (Japan), the DAX (Germany), and many many others.

Now, 1973 a new financial product became accessible to traders on the Chicago
Board Options Exchange: The option. Over time, options trading developed as
most other forms of trading did and gave birth to binary options trading, which
can easily be traded from your home. Let’s take a look at how traditional options
contracts work.

Essentially, an options contract gives the holder the right to buy or sell an asset
at a predetermined price within a certain period of time (or expiry period). The
holder is not required to buy or sell at the predetermined price, however, he or
she does have the option to if he or she so wishes.

There are two types of options contracts: PUTS (decreasing value) and CALLS
(increasing value).

For example, if an investor expects the price of an asset to rise from its current
level over the next period of time, he would purchase a CALL contract. If the
investor believes that the price will be lower than its current rate over the next
period of time, he would purchase a PUT contract.
Here is an example to help explain options contracts work.

Let’s say that you want to buy a piece of land that currently is worth $100,000 and
you believe that in the next year the value will rise by another $30,000. However,
you don’t want to tie up $100,000 for a year in that investment. So, you speak
with the seller of the land and he offers to sell you an options contract to purchase
the land a year from now. He offers you a $5,000 contract and you agree to it.

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The Binary Institute — Introductory Course in Binary Options Aedan Kelly

For example, if an investor expects the price of an asset to rise from its current
level over the next period of time, he would purchase a CALL contract. If the
investor believes that the price will be lower than its current rate over the next
period of time, he would purchase a PUT contract.

Here is an example to help explain options contracts work.

Options Profit Structure Example

Cost of land: $100,000
Cost of contract/Premium: $5,000
Total cost if purchased: $105,000

Let’s say that you want to buy a piece of land that currently is worth $100,000 and
you believe that in the next year the value will rise by another $30,000. However,
you don’t want to tie up $100,000 for a year in that investment. So, you speak
with the seller of the land and he offers to sell you an options contract to purchase
the land a year from now. He offers you a $5,000 contract and you agree to it.
A year from now, you see that the land has increased in value to $130,000, so you
decide to execute your right to purchase the land at the agreed price of $100,000
and now you own the land. So, if you think about it, after you pay the $5,000
for the options contract and then the $100,000 for the land , you are left with a
$25,000 profit.

But, let’s say for example that the instead of the land rising in value, that it
decreases in value to $80,000. A year later you are not obligated to exercise the
purchase of the land and your loss is only $5,000 for the options contract.

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The Binary Institute — Introductory Course in Binary Options Aedan Kelly

Options Profit Structure

Current value of land and contract: $100,000
Options contract premium $5,000
Potential value at end of contract: $130,000
Potential profit at end of contract: $25,000

In the next chapter, we’ll go into more detail about WHAT options are, specifically
binary options, and how they are different from other forms of trading, and how
we can trade them; but as we are focused on the history of trading, we’ll stick to
talking about general trading.

It’s important to mention that trading continues to develop to this day. People now
are capable of trading in a variety of ways, whether it is traditional stocks trading,
forex trading, or binary options; traders are capable of following the market price
movements on their own and making their own decisions of when to trade.

In the past, a trader would contact a broker, who would relay the order to a
specialist on the floor of a stock exchange to execute the sale of the contract. The
same goes for forex trading. As late as the 1970’s traders would make exchanges
exclusively through banks or brokerages who would negotiate the rates and would
take a small commission on the exchange.

This would all change eventually with the dawn of retail exchange trading. Trading
platforms and brokerages developed to the point where they could reach masses
and facilitate the trading process. With the growing popularity of electronic
trading platforms and the internet, millions of people have gained access to global
currency markets today.

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The Binary Institute — Introductory Course in Binary Options Aedan Kelly

Today, traders can open a trading account from home and can begin to actively
trade in the markets---whether it is forex, stocks, or binary options.
So, as you can see….the way that people interact and exchange has certainly come
a long way from exchanging one good or service for another. Today, you can easily
sit at home, study the markets, and actively profit from the price movements
from hundreds of assets.

In the next chapter, we’re going to dive more into the world of binary options
and the major differences that exist between options trading and other forms of
trading.

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The Binary Institute — Introductory Course in Binary Options Aedan Kelly

Chapter 2:

Binary Options Trading Vs.

Traditional Retail Trading
Now, nearly everyone today has some sort of exposure to trading. Perhaps you
studied finance or economics in university and have some theoretical knowledge
of how the markets work. Maybe you’ve actually traded traditional stocks or
forex in the past and are aware of the different elements that affect the price
movements in the market. You might be a person who reads the finance section
of the newspaper every day to see how
the markets are moving and have an
University Trader understanding of the different social,
economic, and political factors that
affect price movement in the mark.

Whether you follow the markets closely or you’ve only heard about the markets
on the radio on your commute to work, we’re going to dive into the specific details
that will give you everything that you need to know to be a successful trader.

So, this chapter is going to be focused on what are the differences between
traditional retailing trading and binary options trading, what are binary options,
and what are the advantages of binary options trading.

So, let’s start with the standard retail trading formula. Whether it is stocks trading
or forex trading, the idea is that we will buy an asset at a particular price. Once
we’ve bought the asset, we have the right to hold on to it as long as we wish,
whether it’s 1-hour, 1-day, 1-month or 1-year. Essentially, we decide when we will
sell your asset and we then execute the sale.
Now, in traditional trading, we attempt to buy an asset at the lowest price possible
and then attempt to sell the asset when it reaches the highest price. We watch the

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The Binary Institute — Introductory Course in Binary Options Aedan Kelly

markets closely and once the price is at its highest level, we will then execute our
sell order and the difference between the buying price and the selling price will be
our profit. The greater the difference between our buying and selling price means
a bigger profit for us.

For example, let’s say that we’re interested in trading Apple stock. We take a
look at the markets and we see that Apple stock is currently trading at $100. We
think that Apple stock is only going to increase in value, so we buy a share of Apple
stock for $100. Now, we watch the markets over the next month and wait to see
if Apple stock does increase in value. We check the value and we see that Apple
stock is now trading at $150. We now think that Apple will not increase in value
anymore in the near future, so we decide to sell our stock and we’ve profited $50.

In the most basic terms, this is how traditional retail trading works and how traders
profit from the price movements in the market, whether it be forex, stocks, or
commodities trading.

In the world of binary options trading, the idea is vastly different. First of all, we’re
not actually participating in the buying or selling of the actual asset. Instead, we
are buying an contract that gives us the right to an asset for a certain amount of
time at a specific price. This might sound a bit confusing, but it actually is very
simple. Let’s break this down into a few different parts.

Most importantly, there are two types of options contracts that we can trade in
binary options: PUT (decreasing price) and CALL (increasing price). Thats why we
call it binary options, because there are only two choices, either the price will
go up OR a price will go down. Whenever you buy a contract, you will enter the
market at a specific price, which we refer to as the strike price or strike rate. This
is the current market price for that asset and we as binary options traders need
to decide whether the price is going to be HIGHER or LOWER than this price at the
end of our trade.

Let’s take a look to see how this works exactly. A trader will look at the market and
will look at the current price of an asset. If a trader expects the price of an asset
will rise to from its current level over the next period of time, he would purchase a

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CALL contract. At the end of the contract or expiry time, if the price is higher than
the strike price, the trader will win his or her trade. If the price did not go higher
than the strike price, then the trade will be a loss.

It works in a similar fashion for PUT contracts. If the trader believes that the price
will be lower than the current price of an asset at the end of the contract, then he
or she will place a PUT position. If the price is lower than the strike rate at the end
of the expiry time, the trader will win the trade. If it is not lower than that price,
it will be a loss.

Simple, right?

Now, let’s talk about a few of the benefits of binary options trading and we’ll
compare them to the traditional trading formula.

In binary options, everything is fixed or set before you even begin to trade. There
is a fixed expiry time when your trade will end, there is fixed risk, and there is a
fixed return on your investment.

But what does that mean, fixed?

Well, let’s look at the fixed expiry time.

Before you even enter the market, you must
choose a time when your trade will end Fixed
or expire. On most binary options trading • Fixed Expert Time
platforms, you have several options in regards
• Fixed Returne
to the length of the contract. You usually will
have options for a form of BINARY trades,
which will offer expiry times every 10-minutes,
15-minutes, half hour or hour depending on the asset. You usually will also have
SHORT TERM contracts, which usually offer 60-second contracts all the way up
to 300-second contracts. Most platforms also offer LONG TERM contracts, which
usually expire anywhere from the end of each week, end of every month, and also
end of year trades.
Once you’ve opened your binary options position, you don’t have continue

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The Binary Institute — Introductory Course in Binary Options Aedan Kelly

watching the markets. At the end of your expiry time, the trade will automatically
close. This is of course different from traditional trading where once you open a
position, you must follow the markets closely in order to know when to exit your
trade.

In regards to fixed risk, in binary options you will never lose more than your initial
investment into a trade. If you open a $10 trade, you will never lose more than
your $10, should you lose the trade. In forex, for example, if you open a position
or a lot and the market takes an unexpected turn, you could lose a great deal
more than your initial investment if you do not have any stop loss orders in place.

When we speak about a fixed return on your investment, we’re talking about the
amount of profit you can earn on each trade. Each binary options contract will
offer a return based on your investment, usually anywhere between 60-90% of
your investment. That means, if you place trade of $10 on the EUR/USD with an
80% return, you will receive a profit of $8 should you win. Not only will you receive
your $10 investment in to the trade, but also the $8 profit, which will make a total
PAYOUT of $18 for that trade.

Another important aspect to remember about binary options is that your return
on your investment is not dependent on major price movements. Many binary
options traders make large profits in low volatility markets, because your trade’s
success depends on your strike price. If you open a CALL position, your trade only
needs to be 1 pip or 1 point higher than your strike price for you to win the trade.
It doesn’t matter if you’re 100 pips in the correct direction or just 1, as long as
you are 1-pip in the correct direction you will win your trade or you will be “in the
money” as we say in binary options. Now, it’s also important to mention that if
you are 1 pip off from your strike rate, you will lose your trade or be “out of the
money.”

In traditional trading, it’s a bit different. Depending on what you’re trading, your
profit will be completely dependent of the price movement in the market. If there
is very little price movement, it is not worth selling the asset to earn a small profit.
Even more, sometimes you will be required to wait several days or weeks to see a
substantial price movement that will allow you to see a significant profit.

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The Binary Institute — Introductory Course in Binary Options Aedan Kelly

So, let’s do a quick review of the differences between binary options and how
they are different than other forms of trading.

In traditional retail trading, you actually buy the asset. You try to buy the asset at
the lowest price and then wait until the price reaches the highest level, when you
will execute your sell order. You can hold on to it as long as you want – 1-hour,
1-week, 1-month, 1-year, etc. Depending on the investment that you are making
into the position, you might need to wait until there is a significant price movement
before you will be able to make a substantial profit off of a price movement.

In binary options trading, we are trading contracts – PUTS and CALLS. Each contract
will expire at a certain time, so contracts can be as short as 60-seconds or as long
as 3+-years. You will enter the market at a certain price or strike rate and as long
as your trade is 1-point or 1-pip in the direction that you traded, you will win your
trade. Each contract has a fixed return on your investment, so your profit from
your trade will depend on the size of your investment into the trade, rather than
the amount of price movement in the market.

And these, ladies and gentlemen, are some of the major differences between
traditional trading and binary options trading.

In the next chapter, we’re going to go over trading times and the major trading
sessions.

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The Binary Institute — Introductory Course in Binary Options Aedan Kelly

Chapter 3:

Trading Times
Now, one fantastic element of retail trading, is that you can essentially trade
24-hours a day, 6-days a week. In addition, we can essentially trade in markets all
across the world, whether we’re trading stocks, currencies, indices, or commodities
as long as that specific markets is open.
Now you might be thinking, 24/6? Maybe there was a typo and they meant
24-hours a day, 7-days a week. But, we didn’t. In retail trading, we can trade

24 hours a day / 6 days a week

NOT
24 hours a day / 7 days a week

twenty-four hours a day, six days a week, essentially whenever the markets are
open, whether it is the American market, the French market, or the Japanese
market. We can open trading positions as long as one of the markets is open.

Some of the major markets are: Japan, the U.K. and the US, which span across
several time zones. Now, it’s important to keep in mind that not every single
market is open 24-hours a day 6-days a week. Each country’s market is typically
open anywhere from 8AM-4:30PM, five days a week, depending on the country.

Keep in mind though, while it is 9:30AM in Tokyo, it is 1:30AM in London and 8:30PM
the previous day in New York. Essentially, this means that when the markets are
open in Japan, the markets in London and New York are closed. When the London

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The Binary Institute — Introductory Course in Binary Options Aedan Kelly

market opens at 8:00AM on Monday, the Japanese markets has already been
closed for an hour and the American market won’t open for another 6-hours.

This is why we can say that we can trade six days a week, instead of five. Most
markets will open on Monday morning and close Friday afternoon for the weekend.
But Monday morning in Japan is still Sunday night in the U.S., which will extend
our trading times even further.

Another important fact is that some Asian and Middle Eastern markets are open
from Sunday-Thursday, such as the Saudi Arabian and Jordanian markets. So,
when we think about the time zones around the world and when the markets are
open, we can almost always find at least one asset to trade at any given time.

Now, just because there are markets open 24-hours a day, 6-days a week, doesn’t
mean that we SHOULD trade all of the time. There are times when the market
is quieter and other times when there is greater volatility. If you listen to any
financial news or follow any economic news sites, you often will here about
different trading sessions and their importance. The three sessions are the Asian
Session, the European Session, and the North American Session.

The first session to open is the Asian Session,

which includes countries such as Japan,
Singapore, China, Australia and New Zealand. Asian Session
This is the first session of the day, based upon AUD $ JPY ¥
time zones and this is the first price movement
that we will see in the markets. The Asian session
is known for lower volatility in terms of major
price movements in comparison with the other trading sessions. This session is
heavily reliant on economic trading events, such as manufacturing data or central
bank statements. Major currencies to look at include the Japanese yen (JPY) and
the Australian dollar (AUD).

The next major session of the day is the European Session, which begins just towards
the end of the Asian Session. The European Session includes major markets such
as the British, German, French, and Spanish markets. Major currencies such as the

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British pound (GBP), the Euro (EUR),

European Session and Swiss franc (CHF) are included in
this session. This session also provides
GBP £ EUR € CHF a great deal of market volatility, based
alone on normal market movement,
however, traders can also focus on
any major European trading event.

The final session of the day is the North American Session, which is the considered
to be the biggest trading session of the day. If you look at it, 85% of all currency
trades include the USD, so we are going to be focusing primarily on the U.S. dollar
based events, but also the Canadian dollar
events as well. During the early morning
hours of the North American session, we
American Session
can see a great deal of US economic data
will be reported, which will provide many USD $ CAD$
trading opportunities. Aside from that,
there is enough liquidity in the market to
focus strictly on technical price movement.

So, now that we know what the sessions are, let’s talk a bit about the best times
to trade. As traders, we will find the best trading opportunities when there is the
most price movement
in the market or what
Trading Sessions Overlaps we usually call high
• Asian - European Crossover volatility.
• European-American Crossover

Now we will see the

most price movement in the market when there are multiple sessions that overlap.
That means whenever the Asian Session is ending and the European Session
is beginning, we will have a brief overlap. Whenever the European Session is
starting to wind down and the North American Session is starting to open, we will
have another overlap. And these are the times when we can anticipate the best

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The Binary Institute — Introductory Course in Binary Options Aedan Kelly

trading opportunities.

So, we’ll start by discussing the Asian and European Overlap. This is the overlap with
the least volatility, for a few reasons. For one, the Asian session is the quietest of
the three trading sessions in general, so by the end of the Asian Session’s trading
day when the European markets are just starting to open, there is slightly less
movement. However, this overlap
does offer more price movement
Optimal Trading Times than the Asian Session alone or
Tuesday - Thursday the early part of the European
13:00 - 16:00 GMT session.

The most important overlap,

where we can expect much
higher volatility, is during the overlap between the European Session and the
North American Session. First and foremost, two of the largest financial centres in
the world, London and New York, will be open at the same time. We can see press
conferences and speeches given by leaders of central banks during this session.

Now, aside from there being better hours to trade, there are also better days
to trade. As we already know that the best price movements occur whenever
the different sessions overlap, so naturally the best days to trade are going to be
when the markets do overlap.

Now, the majority of the world’s markets are open between Monday and Friday.
On Monday, each of the markets will be opening for the very first time, so we
can naturally expect less price movement than we will see later on during the
week. On Fridays, the markets will begin to close, so we will also begin to see
the volatility in the markets decrease. Now, that being said, the days that we can
anticipate the most price movement are anytime between Tuesday-Thursday.
So, let’s take a look at the best times to trade. Generally speaking, the most
active trading hours for traders are between the London markets opening time
at around 08:00 GMT until the US market’s closing time around 22:00 GMT. The
peak market hours are during the European Session and North American session
overlap, which is between 13:00 GMT – 16:00 GMT. These are the most liquid

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hours, which is when most traders are trading.

It’s also important to keep in mind, that there are also times that are not ideal for
trading. Typically speaking, we can consider the weekends and holidays as times
to step away from the markets and relax. There won’t be very much market action
anyway. Also, anytime there are major sporting events or cultural events, like the
SuperBowl, Eurovision finals, etc. the markets will typically be a bit quieter than
normal.

So, let’s do a quick review.

Investors around the world are trading, in Australia, Japan, England, the US, etc.
With all of the time zones around the world, global markets are open essentially
24-hours a day, 6-days a week.

Due to world time zones, we have three major trading sessions: the Asian Session,
the European Session, and the North American Session.

The best days to trade are between Tuesday-Thursday, anywhere between 08:00
GMT – 22:00 GMT, with peak hours between 13:00 GMT – 16:00 GMT.
And these are the basics of trading times and when you should trade.

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The Binary Institute — Introductory Course in Binary Options Aedan Kelly

Chapter 4:

Market Analysis
It’s important to mention first and foremost that when we are trading, it is critical
that we understand the price movements in the markets. If we’re trading and we
don’t understand the price’s movement, the simple fact is that we’re not trading,
we’re gambling.

Merely guessing the price direction is risky and leaves us with a 50/50 % chance of
a winning trade. Not the best way to use our hard earned money, eh?

The good new is that trading is

Market Analysis NOT going to a casino. We can
• Fundamental Analysis actually study the price movement
• Technical Analysis in the market and understand how
• Sentimental Analysis it has moved in the past in order to
anticipate how the price will move
in the future. If there is a strategy
when it comes to trading, it would
be understanding as much as possible about how the markets work. When we
take the time to study what is happening in the market and how those events
affect the price, we are using a trading strategy known as market analysis.

Now, when we analyse the markets, we are essentially focusing on three different
schools of thought. First, we have fundamental analysis, followed by technical
analysis, and then sentiment analysis. Each form of analysis is equally important
and a basic understanding of each of them can lead you down the path of being a
successful trader. While some traders will tell you they solely rely on fundamental
analysis, others might choose to focus solely on technical analysis. While technical
and fundamental analysis are extremely important, there are some traders who
only use sentiment analysis and they have the results to prove it’s success.

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The Binary Institute — Introductory Course in Binary Options Aedan Kelly

That being said, most successful traders will tell you that they use a mix of the
three rather than relying solely on one form of analysis. We would agree with
those traders here at the Binary Institute, and we will focus over the next chapters
on giving you the skills to reach your trading potential. As you begin to trade, you
will find the best form of analysis that works best for you and what you understand
best.

Now, in chapters five and six, we are going to take a deeper look at technical and
fundamental analysis, but now we are going to start by discussing what the three
schools of thought are and how they can serve us when trading.

Fundamental Analysis

We’ll start by taking a look at fundamental analysis. Now, fundamental analysis

essentially answers the question to WHY the price is moving in the market the
way it is and most importantly will help us anticipate future price movement.

In basic terms, fundamental analysis allows us to look at different events happening

around the world at any given time and understand the effect of those events on
the price of a specific asset. All of the price movements that we see in the market
are influenced by a variety of events around the world that occur on a daily basis.
These events give us an indication of how healthy or unhealthy an economy is or
how strong or weak a particular market it in the short-term, but also in the long-
term. We try to study these events in order to understand what their affect will
be on the value of an asset.

Reports Speeches Data

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The Binary Institute — Introductory Course in Binary Options Aedan Kelly

Now when we say events, we’re referring to a variety of reports or data, speeches,
and press conferences that can affect the price of an asset, whether it be a
currency, a stock, an index, or a commodity. If we are talking about data that is
being published, we can look at employment reports, retail sales data, interest
rate decisions, or manufacturing data.

Speeches by major financial figures also fall under the umbrella of fundamental
analysis. Whenever the head of a central bank, such as the Bank of England, the
US Federal Reserve Bank, the European Central Bank, or the Bank of Japan give
a speech, investors will often look very closely to see if there are any hints about
how the economy is fairing in the short term, but also if there are any hints about
future changes to monetary policy.

Now, all of this is important to us because traders follow the markets and they
will react to the data they see. Many traders will actually trade when these
fundamental events occur, depending on the result, in order to make the biggest
profits.

Technical Analysis

Another important form of analysis that we utilise when trading is technical

analysis. Technical analysis is the study of historic price movement in the markets
by using a variety of charts that measure different aspects of the price movement.
We refer to these charts as technical indicators and they show us patters of how
the price has moved in the past, which will help us decide when to enter the
market in the future.

What is important to keep in mind is that we use technical analysis to understand

how the price is moving in the market in the current moment, but more importantly
how the price HAS moved in the periods before. There is a popular saying: “History
tends to repeat itself” and that couldn’t be truer for financial markets. The price
movement in the market typically moves in patterns. As the price reaches a certain
level on a specific chart or moves in a certain way, we can predict how the price
COULD move in the future. And this is exactly why we use technical analysis, to
attempt to predict how the price could move in the short or long-term.

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Each of the technical indicators that we use, measures a different aspect of

the price movement. Some indicators measure volatility or how fast the price
is moving in a certain direction, while others measure how much momentum
is behind the price movement. Some indicators measure whether the price is
perceived to be overbought or oversold, while other indicators actually will show
us the directional movement. While each indicator might only give us one piece
of information to the puzzle, when we combine a variety of indicators, we have a
better understanding of the overall price movement in the market.

To new traders, we usually give this example. Imagine that you are standing in a
park and you look out across what lays in front of you, and you feel that you have
a good understanding of what the park looks like. So, you decide to take a picture
of the park with your camera phone. Now, the very next day you are in a plane
and you fly over the very same park. You look down and notice how different the
park looks from above. You see different aspects of the park that you couldn’t see
from the ground. So, you take picture of the park from above.

Now, when you take the two pictures and you put them side by side, you have
a more complete understanding of what the park actually looks like. And this is
what we’re doing with technical analysis. We’re looking at the price movement
from a few different aspects to understand as much about the price as possible
before we invest in a trade.

Sentimental Analysis

Now the last type of analysis that we will utilise is sentiment analysis. In general
terms, sentiment analysis is relies on the individual feelings, or sentiments, of a
trader. If each trader followed the markets by utilising technical and fundamental
analysis, the markets would cease to function. All traders would trade in the
same direction and we all would be millionaires.

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The fact of the matter is, that no matter how many indicators we use or how
aware we are of the fundamental environment of a particular asset, there are
times that we still will trade in a certain way without any particular explanation.
Sometimes, we will just have a feeling that the market is going to react in a certain
way and we go with our gut feeling.

Now, sentiment analysis is extremely important, but it is not a form of analysis

that we can necessarily study. Sentiment analysis is highly individual and is based
on your personal trading experience. The more we learn about the market and
understand about the price movement, the more opinions we will have about
potential price movement in the future.

Now, as we said earlier, most traders will use a mix of technical, fundamental, and
sentiment analysis whenever trading. As our course proceeds, we are going to
take a deeper look at technical and fundamental analysis so that you can begin to
utilise each of the individual skills.

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Chapter 5:

Technical Analysis
So, in the last chapter we spoke about the different types of analysis that we
use whenever we attempt to understand the price movement in the market. We
spoke about technical, fundamental and sentiment analysis. This lesson will focus
on technical analysis — the study of historic price movement by using charts and
graphs.

We mentioned that history has a tendency to repeat itself. Well, price patterns
also have a tendency to repeat themselves in the markets, as well; and this is what
we’re looking for whenever we use technical analysis. We are looking for patterns
that will give us a signal to anticipate the future price movement.
So, we’ll start with some of the finer details of technical analysis and progress
from there.

Whenever we are using technical analysis, we are using a variety of charts that
measure different aspects of the price movement. We refer to these charts as
technical indicators or indicators. Now, there are dozens of technical indicators
that you can use whenever you’re trading and each of these indicators will have
at least one strategy that you can apply to anticipate the future price action.

Now, in order to access the indicators, we will need to use a charting system
that will allow us to look at a variety of indicators and even change some of the
parameters of the charts in order to personalise our analysis to the type of trades
that we will execute. Some of the popular charting systems are MetaTrader (i.e.
MT4 or MT5), FreeStochCharts.com, or NetDania. Each of these platforms has a
slightly different layout and offers different features. Most of the websites are
either free or will allow you to download a free version that will allow you to
decide which one suits you and your trading style.

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As we said earlier, there are dozens of indicators that measure different aspects
of the price movement. Some indicators measure momentum or how much force
there is behind the price movement. Other indicators will measure the volatility
in the market at a particular moment or how fast the price is moving in a certain
direction over a period of time. Some indicators measure overbought or oversold
conditions, which show areas where the price is perceived to reach an extremely
high or low level, relative to the time period.

You might have heard about indicators such as the RSI, Bollinger Bands, Support
and Resistance or Moving Averages. The RSI for example is a type of chart referred
to as a momentum oscillator that measures overbought and over sold conditions.
The Bollinger Bands is a volatility indicator that that measures how fast the price
is moving in one direction. Support and Resistance lines help us find potential
price limits where the price will either break and reverse, or continue in its current
direction. Moving averages help us determine the general direction of a price
movement over a period of time, which is quite useful when looking at different
time frames of trades.

But, out of all of the indicators that you can learn about, the most important
technical indicator that any new trader can learn is the Japanese Candlestick chart.
It’s a technical indicator that was developed in Japan by rice traders in the 17th
century to monitor the rice trade. Now, the indicator has come a LONG way since
it was developed, but its application today to retail trading is essential. In fact,
most of the technical indicators that you will learn in the future, will fit perfectly
right on top of the Japanese candlestick chart.

So, let’s talk about a few of

the features of the candlestick
chart and the benefits that it
offers us when trading. We’ll go
into all of the details of of the
candlestick chart in our video
series, but we’ll share with you
the important details as well.

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First and foremost, a candle stick chart is set on an “X-Y axis”, with the X-axis
(horizontal line going across the bottom of the chart) showing us the time the past
price movement up until the present time. The “Y-axis” (the vertical line moving
across the right side of the screen) shows us the price of the asset.
Between the two axis we will see a variety of coloured blocks. Depending on the
charting system you use, the blocks could be red and green or other charts use
red and blue. Some of the blocks will be long, some will be short, some will have
lines coming out of the top and bottom of them and others will have no lines
at all. These blocks and lines are our candlesticks and they give us a wealth of
information about the price movement in the market. More importantly, each
candles’ interaction with another candlestick furthers our understanding about
how the price will move in the future.

We’ll start by talking about the block or what we refer to as the body of the
candlestick.The bodies each represent a period of time and are coloured to show
us which direction the price moved. Depending
on the time frame that you have set your charting
system to, each candlestick could represent a
variety of time periods. Each candle could show
us the price movement over 1-minute, 5-minutes,
10-minutes, or even each candlestick could
represent 15-minutes,
30 minutes, 1-hour,
1-day, 1-month, or
1-year. It’s all up to
you and which time frame you choose, but depending
on how you set your chart, the candlesticks will show
you the price movement for that specific period of
time.

The colour of the candlestick will let us know whether

the price went UP or DOWN during the period. If it’s a blue or green candlestick,
this means that the price moved up for that period of time (1-minute, 1-hour,
1-day, etc.). If the price is moving up, this means that there are buyers in the
market who are driving the price up. If we have a red candlestick, it’s just the

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opposite. It means that the price is moving DOWN for that time period and that
sellers have entered the market and have driven the price down.

If we look at the body of a red candlestick for example, we know that the price is
moving down for that period of time. If you look at the very top portion that red
body, you will know where the price was whenever that candle started or OPENED.
If you look at the bottom of the red body, you will see the price where the candle
stopped or CLOSED at the end of the time period. For a blue or green candle, it’s
just the opposite. The opening price or starting price will be at the bottom of the
body and the closing or stopping price will be at the top of the body.

Now, the price is constantly moving in the market, moving in waves of up and down
motions. As the price moves up and down, the candlestick chart is going to trace
the entire price movement during that period. The is why we see the different
colours, but also the lines that peak out of the top and bottom of the candles.
These lines are known as SHADOWS or WICKS and they show us the full price
movement during that candlestick’s time period. If you see a red candlestick with
a line coming out of the top of it, it just means that the price moved higher than
where that candlestick started during it’s time period. If you see a wick coming
out of the bottom of the candlestick, it just means that the price went lower than
where it closed during that time period.

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The Binary Institute — Introductory Course in Binary Options Aedan Kelly

The same goes for green or blue candles. If we

see a wick coming out of the top of a blue/green
candlestick, that just means the price went higher
than where it closed. If a wick comes out of the
bottom of the candlestick, it just shows us that
the price went lower than where it started.

Now, you’re probably wondering thinking,

okay, this is all great, but how can I use this
information. Well, to be honest, if we look at
only one candlestick, there is very little reliable
information that the candlestick can give us
about future price movement . However, if we
look at a few consecutive candlesticks, we can
reap a great wealth of knowledge about the
general market conditions and how the price
might reach in the future.

Whenever we are trading, we are looking for areas where we can see that the price
is clearly moving in one direction for a period of time. Whenever we can identify
that the price is clearly moving in one direction over a series of candlesticks, we
can identify what is known as a TREND. Trends occurs when the market decides
that the price needs to move in one direction for a certain amount of time. Some
trends are as short as 40-minutes and other trends can last days, weeks or months.
Even more, there are different types of trends .There are upward trends where
buyers are in control of the markets and the price is moving in a general upwards
direction. There are also downward trends where the sellers are in control of the
market and the price is moving in a general downwards direction.

Trends are very important for us because they let us know how the price is moving
over certain period of time. In binary options, you have a variety of contracts at
your disposal to choose from when you’re trading. You have 60-second options,
other options contracts will end every 10-minutes, 15-minutes, or half hour. If
you can learn to spot a trend, you can actually trade with that price movement.
Other traders also learn to trade on price reversals, which occur when one trend

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The Binary Institute — Introductory Course in Binary Options Aedan Kelly

ends, changes directions, and a new trend begins. The important thing to know,
is that you can use the candlestick chart in order to learn how to spot the trends
and trade in the markets.

After you have learned how to read a candlestick chart and spot trends, you can
begin to learn to use other technical indicators like the RSI, MACD, Parabolic SAR,
Moving Averages, the Stochastics, DMI, ADX, and dozens of others of indicators
that will give you a more complete picture of the price movement in the market.
Now, some indicators like the Bollinger Bands, Moving Averages, and the Parabolic
SAR, will sit directly on the candlestick chart and their strategies will depend on the
interaction between the candlesticks and the other components of the indicator.
Other indicators like the RSI, the MACD, the stochastic, and the DMI will have
their own chart that will not be displayed on the candlestick chart. Each of these
indicators are also quite easy to read and understand, and more importantly, help
clarify information that you might not see on the candlestick chart.

The candlestick chart just shows us how the price has moved in the past and how it
is moving now, however, the other aspects that we’ve discussed like momentum,
volatility, and oversold and overbought conditions are equally important and give
us a more complete picture of the price movement in the market.

Most traders will usually use a combination of four or five different indicators
to understand the price movement before they begin to trade. We typically
recommend to new traders to try and learn at least three indicators before you
begin to take large price actions in the market, if only to give yourself more
confidence in your trading decisions.

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The Binary Institute — Introductory Course in Binary Options Aedan Kelly

Chapter 6:

Fundamental Analysis.
In chapter four, we spoke about market analysis and introduced you to some
of the ideas behind fundamental analysis. We essentially said that fundamental
analysis is the reason behind the price movements that we see in the markets. It
allows us to look at different events happening around the world and understand
the effect of those events on the price of an asset.

Whenever we look at the technical indicators, we are actually looking at the price
movement that is caused by the different events around the world.The price
movements that we see in the market are influenced by events that occur on a
daily basis and give us an indication of how healthy or unhealthy an economy is or
how strong or weak a particular market it. We try to study these events in order
to understand what their affect will be on the value of an asset.

Now, there are many different types of events that affect the markets. Some
are economic events, which are reports related to a specific economy that are
published by a research group or government. These reports are usually connected
to a specific type of data, such as employment data, sales data, or manufacturing
data. Some reports are released weekly, others monthly, some quarterly, while
others annually.

Whenever these economic reports are released, traders and investors will look
at this information in order to have a better understanding of how that economy
fairs in the short-term and long-term and will trade accordingly. As each of these
reports are scheduled days and weeks before the actual data is released, many
traders will have time to prepare for the event and how they will trade depending
on the results.

Let’s take an example of an economic report to see what effects it may have on the

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market once it is released. The clearest example would be an employment report

and for our example, we’ll take the U.S. Nonfarm Payroll (most often referred to
as the NFP), a monthly employment report that shows the change in the number
of people who found employment in the previous month.

Employment is an important economic indicator for a variety of reasons. The

more people who are employed in a country shows us that more people are
capable of spending or putting money back into the economy. If a country has
high unemployment, we will see the opposite effect where less people will be
receiving regular salaries and will be less capable of spending.

Now, if we see that the NFP report is positive, traders in general will make the
following connection before they decide to trade. They will see that more people
are employed, are capable of spending and investing in the economy, and they
will perceive the U.S. market to be strong in the short-term. This means that
U.S. based assets like the U.S. dollar and stocks will increase in value in the short-
term and we will see upward price movements in the market.If the NFP report
is negative, it will have the opposite effect. Traders typically will view the U.S.
economy as weak in the short-term and we will see downward price movement
in the short-term.

Depending on whether the results of the data are perceived to be positive or

negative will have an effect on the price movement in the market. If we see that the
U.K. has released positive sales data or China has released negative manufacturing
data, traders will trade accordingly based upon the price movements that these
events cause in the markets.

Now there are other type of economic events are more political in nature that
also have a major effect on the markets, and these events often can over a longer-
term effect on the price of an asset. Different political events that have an effect
on the markets are war or political negotiations.

For example, in 2014, many countries enacted an embargo on Iranian products in

reaction to Iran’s nuclear ambitions. Several countries imposed sanctions on the
purchase of Iranian goods, most notably, oil. As Iran is a major supplier of oil to

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The Binary Institute — Introductory Course in Binary Options Aedan Kelly

the world’s oil markets, the price of oil took a major hit and rose drastically. This is
mostly attributed to supply and demand, as the supply of oil suddenly diminished
and the demand for oil remained the same. The price of oil wasn’t stabilised until
after negotiations were reached between Iran and other nations that eased the
sanctions and Iranian oil entered the market again.

Now, you do not need to be an economist or market analyst to understand

the effects that these different economic and political events will have on the
markets in order to be able to trade with them. As traders, we just need to have
a general understanding of what these events represent and to know when they
are happening to be able to participate in price movements they will cause. We
have many tools at our disposal and a typical daily fundamental analysis shouldn’t
take any longer than twenty or thirty minutes to give us the information that we
need to be able to trade.

Let’s take a look at some of the resources that we can use to enrich our fundamental
understanding of the markets.

First and foremost, there are a variety of news outlets that will summarise the
events happening around the world. Some popular news sites that traders use
are Bloomberg, Reuters, CNN Money, investing.com, ForexFactory, and FinViz.
Each of these website are update regularly throughout the day and include articles
on the various economic reports that are to be released. They often will include
statement’s from economists and market analysts about their expectations for

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these different events and will often time break down the significance of the
reports. The articles are typically very easy to read and are not too long in length,
so that you can easily read three to four articles in ten minutes time and have a
good understanding about what to expect during the day.

Another important resource that we can use as traders is the economy calendar.
Most of the news outlets listed above will offer their own economic calendar,
that will list all of the reports and speeches that are scheduled for the day.
Depending on the economic calendar that you are using, you will be provided a
variety of details about the different events. All economic calendars due provide
the following details: the date and time when the event will occur, the currency
or economy that will be affected by the event, the previous results of the event if
it has occurred before in the past, the forecasted result expected by economists,
and then an area that will display the actual result of the event once the data has
been released.

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The Binary Institute — Introductory Course in Binary Options Aedan Kelly

Now, the economic calendar is important for all traders for a few different reasons.
First, most traders like to trade with economic events. They will wait for the data
to be released and then will trade with the price movement that ensues in the
short-term. However, if you are not interested in trading with a specific trading
event, it is still important to be aware of when data is being released, as it can
have a major effect on trades that you might have previously opened.

We’ll share with you an example of how being unaware of economic events could
affect your trades. Let’s say that you’ve been looking at your technical indicators,
and you see there is a signal that has appeared on all of your charts and you
think it is a great time to open a trade. So, you go to your trading platform and
you open a trade that will expire in the next hour. 15-minutes into your trade, a
report is released and the markets change directions immediately, jeopardising
your trade. Now, if you would have been aware that this event was scheduled to
happen when you were planning to trade, you could have planned accordingly.
Perhaps you would have decided to wait until after the data was released before
you decided to open your trade or perhaps you would have decided to avoid
trading all together. Nonetheless, by not being aware of data that will affect that
markets, you have greatly increased the risk to your trades.

For many traders, the greatly enjoy the fundamental aspects of market analysis
as it gives you greater insight into WHY the markets are moving the way they
are. Some traders will also trade exclusively with fundamental news and with the
economic calendar avoid using any of the technical indicators to decide how to
trade. At the end of the day, the choice is yours, however, we recommend that
you use a mix of the two for your trades.

In the final chapter of our introduction to binary options E-book, we are going
to take all of the information that we have learned so far and apply it to HOW to
trade on a binary options trading platform.

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The Binary Institute — Introductory Course in Binary Options Aedan Kelly

Chapter 7:

Trading on a Binary Options

Platform
We’ve reached the final chapter of our E-book and it quite possibly is the most
important piece of our binary puzzle. In this chapter, we’re going to discuss in
greater detail WHAT binary options are, HOW we trade them, and most importantly,
the different types of trading platforms.

So, let’s review what we’ve already covered about binary options. We know that
binary options are a type of contract that give us the right to an asset for a fixed
about of time. It could be 60-seconds, it could be 10-minutes, it could be one
week, or even five years; however, before we even open our trade we need to
choose the date and time that our contract will end or EXPIRE. This is our EXPIRY
TIME.

Asset Classes
STOCKS COMMODITIES
INDICES CURRENCY PAIRS

With binary options, you also can trade a variety of assets. You can trade currency
pairs, commodities, stocks, and even indices. Most traders usually will diversify
their trading portfolio by trading across all four asset classes, which is huge benefit
to binary options traders.

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The Binary Institute — Introductory Course in Binary Options Aedan Kelly

We also know that there are two types of contracts: A CALL and a PUT. A call
contract can be considered as a “BUY” position and we use it in scenarios where
we believe the price will move up from its current position by the end of our
contract. A put contract is sometimes referred to as a “SELL” contract and we
use it in scenarios where we believe that the price will be lower than its current
position by the end of our contract.

The price that we enter the market at is known as the STRIKE RATE or STRIKE
PRICE. This is the current price of the particular asset offered on the platform at
that moment in time. With binary options trading, as long as you trade in the right
direction and you are one PIP or point in the correct direction, you have won your

$10 trade for the EUR/USD with 80% ROI

80% of $10 = $8
Winning trade = $10 investment + ROI
($8)
Total payout = $18

trade. However, if you are one PIP in the wrong direction, you’ve lost your trade.
One of the most popular aspects of binary options is that each asset will have a
FIXED RETURN ON YOUR INVESTMENT. Each of the binary options contracts offers
a different return on your investment or what is often referred to as a PAYOUT.
Depending on the platform, the payout is usually anywhere between 60%-85% of
your investment into the trade.

The formula works out this way. Let’s say that we want to open a $10 trade for
the EUR/USD currency pair with an 80% payout. If we win our trade, we will
receive 80% of $10 as a profit in addition to the $10 that invested into the trade.
80% of $10 is $8, so, we would receive our $10 investment into the trade + the $8
profit for a total payout of $18. If we lose our trade, we only lose our investment
into the trade which was $10.

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The Binary Institute — Introductory Course in Binary Options Aedan Kelly

So, from what we’ve seen so far, we understand how PUTS and CALLS work, what
the EXPIRY TIME represents, how trades are won or lost in regards to the STRIKE
RATE, and also how we make money with the PAYOUT. So, now it’s time for us to
take a look at how we can actually use these elements and trade.

Now, there are MANY different binary options platforms that you can choose from
whenever you decide to open a trading account. Each of the platforms will look
a little bit different from the other, but many of the platforms will share a variety
of features, so we’ll introduce you to the post important features that almost all
platforms share.

Once you’ve actually opened and funded your trading account, you’ll be able to
login to the platform and begin trading. As soon as you’re logged into your account,
you should see some icon on the page that says TRADE or TRADING PLATFORM.
You can click this and you will be led directly to the area where you will be able to
begin trading.

Now, on almost every trading platform you will notice that there is a clock that
is counting down the time. Most trading platforms use GMT time or UNIVERSAL
TIME, which most likely is NOT your local time. All of the times that you see
on the platform, such as the expiry times, will be measured by this clock. So,
we recommend that if you’re using any trading tools such as charting systems or
economic calendars, that you also synchronise these tools to GMT (0) Casablanca,

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The Binary Institute — Introductory Course in Binary Options Aedan Kelly

Monrovia, Reykjavik, as this is the same time at universal time. If you’re not sure
that your platform is synced to GMT (0), then make sure to ask your account
manager or their customer support team to clarify it for you.

As you scroll down, you will see that there are either one or two TRADING CELLS
or TRADING SQUARES that have graphs and other information in them. Let’s go
over a few of the features of these trading cells.

First, you should see that there is an area that says ASSET and that it will have a
button that allows you to choose from a list of assets. You also will see an area
that says EXPIRY and there will be a similar button that shows you a dropdown
menu that will allow you to choose what expiry time you want to choose.

You should see an AMOUNT area where you can change the size of your trade. Each
platform will offer their own minimum trade, but typically the minimum amount
that you can invest in a trade is $10 and the maximum $5,000 per trade. Check
with your account manager or customer support to verify what the minimum and
maximum amounts are per trade. You usually can type the trade amount that you
want to add OR choose if form a dropdown menu.

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The Binary Institute — Introductory Course in Binary Options Aedan Kelly

You also will see a graph showing you the price movement of that particular asset.
Most platforms only offer a line graph, which just shows you where the price has
been over the last few time periods. Most platforms will show you a 30-minute
time frame, a 1-hour, 2-hour, 4-hour, 8-hour, and 12-hour time frame which will
help you decide how you want to trade. It is important to mention that this is a
line graph and is not a technical indicator that shows you different aspects of the
price movement.

To the right of the graph, you will most likely see three buttons. One button is
says CALL and usually has an arrow pointing upward, the other says PUT and has
an arrow pointing downward, and in-between the PUT and CALL buttons, you
should see a square with a price that is fluctuating. The price is the STRIKE RATE
or current price being offered on the platform. Whenever you decide to open a
position, you will either push the PUT or CALL button and the price that is in that
middle box whenever you press PUSH or CALL will become your strike rate.

Next to the PUT and CALL buttons, you should see an area that says PAYOUT
and POTENTIAL PAYOUT. The PAYOUT is percentage or RETURN ON YOUR
INVESTMENT that we discussed earlier. The percentage depends on the asset and
will be different for each asset. The POTENTIAL PAYOUT will calculate what the
PAYOUT could be based upon the amount of money that you have typed into the

Right above the trading cells you most likely will notice that you have a few
more options that you can choose from. You might see an area that says BINARY
OPTIONS, SHORT-TERM, LONG-TERM, and maybe other options as well. The

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The Binary Institute — Introductory Course in Binary Options Aedan Kelly

most popular are the BINARY, SHORT-TERM, and LONG-TERM options, so we’ll
dig deeper into these types of trading formats.

We’ll start with the BINARY feature, as this is the most popular feature for most
traders. The BINARY feature of most platforms will offer a variety of expiry times.
For most of the assets featured on the BINARY tab, you will find that the assets
will offer an expiry time every 10-minutes, 15-minutes, or half hour. This is the
area of the page that also allows you to choose an END-OF-DAY TRADE, which is
the last contract of the day that typically expires between 18:00-23:30 platform
time.

The SHORT-TERM feature is very straightforward and typically allows you to

choose a 60-second contract. These contracts will expire 60-seconds AFTER you
have chosen a PUT or CALL position. Some platforms also over 120-second options
and 300-second options, which will expire 120 or 300 seconds after you choose
a PUT or CALL position. Many people use this feature whenever they notice that
there is rapid price movement in one direction and they want to trade with the
volatility and open as many positions as they can. This feature shouldn’t be used
exclusively and should be used only in certain scenarios and conditions.

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The Binary Institute — Introductory Course in Binary Options Aedan Kelly

The LONG-TERM feature of the platforms give you even more options in terms of
choosing when your trade will expire. The LONG-TERM trades will expire every
Friday at a fixed time AND also the last day of the month. Most platforms will offer
four END-OF-WEEK trades each month in addition to the END-OF-MONTH trade,
which is available if it falls anywhere between MONDAY-THURSDAY. This feature
also usually will offer a variety of expiry times for each asset, which can stretch our
several months or even years from the moment that you are considering opening
the option.

Now, in addition to the trading features of the platform, you also will have an area
where you can check open and expired trading positions, an area to check your
account balance, and also areas that you can speak with customer support. Each
platform is different, so make sure that whenever you fund your trading account,
that you ask your account manager for a PLATFORM WALKTHROUGH or access to
a webinar that will teach you how to use the trading platform.

We’ve come to the end of our Introduction to Binary Options E-book. We hope
that you have a better understanding of how binary options work and how to
start trading. Here at the Binary Institute we also offer our video series, where
you can learn how to use a charting system, learn how to use different technical
indicators, the economic calendar, and also risk and money management skills.

Thank you from our team and good luck to you!

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