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MULTIPLY YOUR TRADING OPPORTUNITIES
LIMIT YOUR RISK

Using Binary Options
For Unique Trading
Opportunities

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www.tradewithprecision.com

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MULTIPLY YOUR TRADING OPPORTUNITIES
LIMIT YOUR RISK

Trade With Precision Risk Warning
This presentation is introductory in nature. It provides a high-level overview of some of the key matters relevant
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MULTIPLY YOUR TRADING OPPORTUNITIES
LIMIT YOUR RISK

Nadex Risk Warning
Futures trading and options trading involve risk, which may result in financial loss, and are not
suitable for everyone. Any trading decisions that you may make are solely your responsibility.
The information presented in this webinar is for informational purposes only. The contents of
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instrument offered on Nadex. Past performance is not indicative of future results.

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MULTIPLY YOUR TRADING OPPORTUNITIES
LIMIT YOUR RISK

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Trade with Precision

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tradewithprecision.5 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK Today’s Agenda: 5 • INTRODUCTION to Binary Options • The BENEFITS of Trading Binary Options • BINARY OPTIONS in Action • START TRADING with NADEX today www.com .

tradewithprecision.6 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK Introduction to Binary Options 6 www.com .

00 per point movement in the contract with a POSSIBLE 100 POINTS total movement 7 www.com .tradewithprecision.7 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK Binary Options Risk & Reward • A binary option represents a FIXED RISK and REWARD contract ¾ It CANNOT trade below 0 or above 100 ¾ MAXIMUM RISK and REWARD are known (and clearly displayed) at the time of placing the trade ¾ Binary options will ALWAYS EXPIRE at 0 (if false) or 100 ( if true) ¾ Each binary contract bought/sold represents $1.

com .tradewithprecision.8 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK Binary Option Scenarios • The price of a binary always and only trades between 0 and 100 • This is regardless of what happens in the UNDERLYING MARKET Lowest LowestPrice Price 0 8 Highest HighestPrice Price 25 50 75 100 www.

forex. commodity commodityfuture) future) 9 3. forex.9 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK Binary Options: Contract Components 2.Expiration Expirationtime time&& date date(Chosen (Chosenfrom from Hourly. 2. 3.Daily.tradewithprecision. 1. future. Weekly Weeklyexpirations) expirations) www.Strike StrikePrice Price(chosen (chosenfrom fromaavariety variety of ofstrike strikeprices pricesdepending dependingon onthe the trading tradingscenario) scenario) 1. Hourly.com . Daily.Underlying Underlyingasset asset (Could (Couldbe beany anymajor major Index Indexfuture.

10 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK Selling Binaries: Reward vs.33:1 0.33:1 0 25 50 75 100 Sell Sellat at75: 75: Max MaxReward Reward==75 75 Max MaxRisk Risk==25 25 Reward:Risk Reward:Risk== 3:1 3:1 0 25 50 75 100 www.com . Risk 10 Sell Sellat at25: 25: Max MaxReward Reward==25 25 Max MaxRisk Risk==75 75 Reward:Risk Reward:Risk== 0.tradewithprecision.

11 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK Buying Binaries: Reward vs.33:1 0 25 50 75 100 Buy Buyat at25: 25: Max MaxReward Reward==75 75 Max MaxRisk Risk==25 25 Reward:Risk Reward:Risk== 3:1 3:1 0 25 50 75 100 www.33:1 0.com .tradewithprecision. Risk 11 Buy Buyat at75: 75: Max MaxReward Reward==25 25 Max MaxRisk Risk==75 75 Reward:Risk Reward:Risk== 0.

50 31.50 Max MaxLoss Loss==$75.50 $24.com .50 Sell SellBinary Binaryat at24.50 Max MaxProfit Profit==$68.50 Max MaxLoss Loss==$31.50 24.12 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK Binary Options: Contract Trade Outcomes Buy BuyBinary Binaryat at31.50 $31.50 Max MaxProfit Profit==$24.50 12 www.50 $75.tradewithprecision.50 $68.

tradewithprecision.13 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK Benefits of Trading Binary Options 13 www.com .

tradewithprecision. commodity futures.14 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK Minimal Start Up Requirements SMALL start-up capital requirements: ¾ Trading on Nadex with as little as $100 ¾ NO PLATFORM FEES or minimum trading requirements ¾ A SINGLE ACCOUNT to trade all markets ¾ CONSOLIDATE your cash to trade forex. & index futures ¾ Invaluable supplemental tool for the EXPERIENCED investor ¾ Great introductory tool to new markets for the NOVICE 14 www.com .

15 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK Simple Trade Execution • Trade Execution is SIMPLE to understand: ¾ If you think price is going UP. you BUY ¾ If you think its going DOWN. you SELL ¾ Single Click LIMIT ORDERS to take profit whether you are online or not ¾ Take PROFIT on part or all of your open position ¾ Have multiple limit orders 15 Take Takeadvantage advantageof of ‘BULL’ ‘BULL’and and‘BEAR’ ‘BEAR’ markets markets www.tradewithprecision.com .

com .16 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK Risk Management • FLEXIBILITY: Simple Money Management ¾ You can pick your order price and MAXIMUM potential risk ¾ Allows for a high degree of CONTROL and FLEXIBILITY • RISK MANAGEMENT: ¾ The very nature of a Binary Option contract LIMITS your RISK ¾ Risk is ALWAYS known in advance! 16 www.tradewithprecision.

account.17 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK Overall Account Risk Limited • When you place a trade your MAXIMUM RISK is clearly displayed • This amount is then held as collateral ¾ If you BUY at 55 your max risk is 55 points. the exchange holds 100% COLLATERAL or the full $100 pay out that is possible on the trade This Thismeans meansthat thatyou youCANNOT CANNOTlose losemore moremoney money than thanwhat whatisisin inyour yourtrading tradingaccount. 17 All Allcontracts contractsare arecash cashsettled settled––no nophysical physical delivery delivery www. and $55 per contract will be held until the trade is closed out ¾ The seller on the other side has SOLD at 55 and will put up the other $45 ¾ In both cases.com .tradewithprecision.

com . etc) ¾ Currencies (EURUSD.tradewithprecision. Corn. Oil. USDCHF. FTSE 100. etc) ¾ Commodity Futures (Gold.18 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK Benefit: Ease of Access • Trade worldwide markets from a SINGLE ACCOUNT ¾ Index Futures (US 500. etc) 18 www. USDJPY. etc) ¾ Events (Non-Farm Payrolls. ECB Rate. Japan 225. Wall St 30.

com . www.tradewithprecision.19 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK Prices Reflect Underlying Futures Market Energy Energy Metals Metals Agriculture Agriculture 19 * Nadex is not affiliated with the organizations that publish these indices or list these underlying products and neither they nor their affiliates sponsor or endorse Nadex or its products in any way.

tradewithprecision.20 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK Prices Reflect Underlying Futures Market US USIndices Indices European European Indices Indices Asian AsianIndices Indices 20 * Nadex is not affiliated with the organizations that publish these indices or list these underlying products and neither they nor their affiliates sponsor or endorse Nadex or its products in any way.com . www.

21 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK Wide Range of Strike Prices – Hourly. Weekly Various contracts on Crude Oil This Thisprovides provides multiple multiple reward:risk reward:risk opportunities opportunities for foryou youto to select selectfrom from depending dependingon on your your trade trade setup setupand and target targetprice price 21 www.tradewithprecision. Daily.com .

com .tradewithprecision. even within the current Bid/Offer SPREAD • 22 TIGHTEN SPREADS yourself .22 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK Direct Market Access Exchange • Nadex is the exchange and you trade with DIRECT MARKET ACCESS • Place limits at your preferred trade price.YOU can make your own market! www.

com .tradewithprecision.23 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK Benefit: Traditional Stops not Required • MAXIMUM dollar risk is known in advance if price moves against us Maximum Maximumloss loss (Short (Shortposition) position) 23 Maximum Maximumloss loss (Long (Longposition) position) www.

5:1on onaaBinary Binary for forjust justaavery verysmall smallupward upwardmove moveto to112.com . 24 However Howeveryou youcan canstill stillget getover over1. move.75 112.75with with no noset setstop stopand andyour yourdownside downsiderisk risk100% 100%capped! capped! www.5:1 1.75 Marked AAwide widestop stopbelow belowweekly weeklycandle candle(approx (approx 105.90) 105.90)on oncrude crudewould wouldmean meanaavery verybad badR:R R:Rin in futures futuresmarket market––you youneed needto topredict predictaaBIG BIGmove.24 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK Crude Oil Weekly Chart – Strike 112.tradewithprecision.

25 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK Crude Oil: Near Contract Expiration 25 • The 112.tradewithprecision.75 contract is now trading well in-the-money • You can close now at 96 or let the contract expire www.com .

value. while underlying market remains constant or goes up • Buying an “out-of-the-money” contract puts TIME DECAY against you.com . ensure that the STRIKE PRICE in your view is likely be hit and/or maintained “Out-of-the-Money” “Out-of-the-Money” Market Marketprice pricemust mustimprove improve to toabove abovethe thestrike strikeor ortime time decay decaywill willerode erodevalue value 26 “In-the-Money” “In-the-Money” Market Marketprice pricemust must remain remainconstant constantor orgo goup up and andtime timedecay decaywill will improve improvevalue. which must be offset by underlying market price increasing • In either case. www.tradewithprecision.26 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK Time Decay: Bullish Bias • Buying an “in-the-money” contract puts TIME DECAY on your side.

27 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK Binary Options in Action 27 www.tradewithprecision.com .

tradewithprecision.com . based upon the setup.28 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK Selecting the Optimal Contract • Select contracts with the BEST reward to risk to suit your trade and limit downside. go “out-of-the-money” @ 12140 for 12 (8:1 R:R) 28 Which Whichoption option would wouldyou you choose chooseand andwhy? why? 12140 12140strike strike@@12 12 We Wewill willrevisit revisit this thisvery verytrade trade example exampleshortly shortly 12080 12080strike strike@@50 50 www.g with a bullish bias you could: – Buy the “in-the-money” strike @12080 for 50 (1:1 R:R) – Or. E.

29 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK Matching Strike Prices & Payouts 29 Select Selectappropriate appropriatecontract contract based basedon onyour yourdirectional directional bias biasand andthe theR:R R:Ron onthe the binary binary www.tradewithprecision.com .

com .tradewithprecision.30 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK News Trade • Ahead of a NEWS ANNOUNCEMENT you think there might be a surprise with a major move to the upside • You BUY a binary at 10 • Your RISK IS CAPPED at 10 regardless of what happens in the market: ¾ There can be a surprise to the downside and you still lose a maximum of 10 ¾ The market can become volatile and trade a long way down before coming back up – you still stay in the trade until expiration • You have a maximum REWARD of 90 (9:1 reward:risk) ItItisissensible sensibleto touse uselimit limitorders ordersto totake takeprofit profit around aroundnews newsas asprices pricescan canget getvery veryvolatile volatile 30 www.

tradewithprecision.com . close. www.31 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK News Trade Pt 1 – Fed Decision 31 Assume Assumeyou youhad hadaabullish bullish bias biasahead aheadof ofthe theFed Fed(due (due in inminutes) minutes)and andthought thoughtthe the market marketwould wouldrally rallyat atleast least 40-50 40-50points pointsinto intothe theclose.

close. strike.Minutes Later 32 Markets Marketsmoving movingin in your favor and close your favor and close to tostrike.Still Stillaalong long time timeto tothe theclose.tradewithprecision.32 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK News Trade Pt 2 .com . www.

tradewithprecision.33 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK News Trade Pt 3 – Near to Daily Close/Expiration Can Canclose closeout out now nowor orhold hold until untilexpiration expiration 33 www.com .

tradewithprecision.34 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK Reversal Trade • You locate a reversal trade with a LONG bias • It is 1:48pm and daily contracts expire at 4:15 (EST) • You think a retracement will occur before the close to at least the 50% Fibonacci retracement level of 12140 • Possible Binaries to Trade: Which Whichcontract contractwill willyou youtrade tradeand andwhy? why? 34 www.com .

tradewithprecision.com .35 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK Reversal Trade Results 35 • YM reached a HIGH of 12159 @ the 62% retracement level • YM TRADING above 12140 at 4:15pm • Multiple opportunities to take PROFIT on the 12140 contract anywhere from $50-$97 or hold until expiration • Reward:Risk of 4:1 to 8:1 Note: Note:this thiscontract contract would wouldhave havebeen been very veryvolatile volatileas asitit traded tradedso soclose closeto to the thestrike strikeat at expiration expiration www.

com .tradewithprecision.36 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK Range Trade Short– The Setup 36 Based Basedon onsimple simple technical technicalanalysis. analysis. what whattrade tradewould wouldyou you take takehere? here? www.

40contract contractprovided providedover over2:1 2:1 R:R R:Rififsold soldat at71 71 www.tradewithprecision.37 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK Range Trade Short – The Result 37 119.com .40 119.

tradewithprecision.38 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK Summary 38 www.com .

contracts under $100 5.tradewithprecision. foreign exchange.39 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK Summary: Binary Options with Nadex 1. Binary Options provide FIXED RISK without a traditional stoploss 2. Minimal capital outlay . Trade worldwide indices. Nadex provides the trading PLATFORM with full DMA execution 4. and commodity futures from a single account 3.com . High reward trading with LIMITED downside – your risk is ALWAYS capped! 39 www.

nadex.Complete 3.nadex.com 2.com with any further questions. • 14 day demo accounts are available CURRENT CURRENTMEMBERS MEMBERS 1.nadex.com 2.tradewithprecision.com .Login 2.com www.Commencetrading trading 40 NEW NEWMEMBERS MEMBERS 1.Visitwww.Visit 1.Completeyour yourdetails detailsand and we wewill willrespond respondvia viaemail email www.Click 2.Visit 1.Clickon onthe theorange orangebox boxin in top topright rightsaying saying‘Sign ‘SignUp’ Up’ 3.Commence 3.com www.nadex.Visitwww.Loginto toyour youraccount account 3.40 MULTIPLY YOUR TRADING OPPORTUNITIES LIMIT YOUR RISK Start Trading With Nadex Today • Phone us on 1 877 77 NADEX or 1 877 776 2339 or email customerservice@nadex.