Full-text resources of CEJSH and other databases are now available in the new Library of Science.
Visit https://bibliotekanauki.pl

PL EN


2016 | 4 | 1 | 52-59

Article title

Binary Options as a Modern Fenomenon of Financial Business

Title variants

Languages of publication

EN

Abstracts

EN
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.

Publisher

Year

Volume

4

Issue

1

Pages

52-59

Physical description

Dates

published
2016-06-01
online
2016-08-03

Contributors

  • Andrea, Kolková, Ing. PhD.; 595228143; Vysoká škola podnikání a práva, a.s., Lucie Lenertová, Ing., Vysoká škola podnikání a práva, a.s.
  • Andrea, Kolková, Ing. PhD.; 595228143; Vysoká škola podnikání a práva, a.s., Lucie Lenertová, Ing., Vysoká škola podnikání a práva, a.s.

References

  • [1] Babypis.com (2015) What is the Best Technical Indicator in Forex? . Consulted: 8. 4 2013
  • [2] Blain Reinkensmeyer. (2014) Technical Analysis, Using the Relative Strength Index. Consulted: 1.4.2016.
  • [3] Bollinger, John. (1992) Using bollinger bands. Stocks & Commodities. 10.2: 47-51.
  • [4] Confas A. (2013) Pros and cons of binary options. Futures: News, Analysis and Strategies for Futures, Options and Derivatives Traders. March 2013. Vol. 42 Issue 2, p 10-10.
  • [5] da Costa, T. R. C. C., Nazário, R. T., Bergo, G. S. Z., Sobreiro, V. A., & Kimura, H. (2015). Trading system based on the use of technical analysis: A computational experiment. Journal of Behavioral and Experimental Finance, 6, 42–55.
  • [6] Cory Janssen, Chad Langager and Casey Murphy. (2016) Technical Analysis, Indicators And Oscillators. Consulted: 31.3.2016
  • [7] Elder, A. (2006) Tradingem k bohatství. Tetčice: Impossible, s.r.o.. ISBN 80-239-7048-8.
  • [8] Jaworski, A. (2006) CBOT Launches Binary Options. Securities Industry News. 18, 27, 11, 24.7., 2006. ISSN: 10896333.
  • [9] Jurník, D. (2013) Co jsou to binární opce a jak to funguje. Consulted: 8. 4 2013
  • [10] Kaufman, P.J. (2013) Trading Systems and Methods, fitht edition. New York: John Wiley and Sons. ISBN 1118236033.
  • [11] Kim, Hong-Joong; Moon, Kyoung-Sook. (2011) Variable time-stepping hybrid finite difference methods for pricing binary options. Bulletin of the Korean Mathematical Society. Volume 48, Issue 2, 2011, pp.413-426, Publisher : The Korean Mathematical Society[Crossref]
  • [12] Kolková, A. (2016) Bollinger Bands use technical analysis in the forex business. Aktuálne problémy podnikovej sféry 2016. In press.
  • [13] Miyake, M, Inoue, H, Shi, J, & Shimokawa, T 2014, 'A Binary Option Pricing Based on Fuzziness', International Journal Of Information Technology & Decision Making, 13, 6, pp. 1211-1227, Business Source Premier, viewed 26. 4. 2016.[Crossref]
  • [14] Rick Thachuk (2010) Binary options - the next big retail investing boom?. FOW [online]. 2010. ISSN 14629658.
  • [15] Thavaneswarana, A. Appadoob, S.S. Frank, J (2013) Binary option pricing using fuzzy numbers. Applied Mathematics Letters, Volume 26, Issue 1, January 2013, Pages 65–72
  • [16] Zmeskal, Z. Generalized soft binomial American real option model (fuzzy–stochastic approach). European Journal of Operational Research, 207 (2010), pp. 1096–1103

Document Type

Publication order reference

Identifiers

YADDA identifier

bwmeta1.element.doi-10_1515_ijek-2016-0004
JavaScript is turned off in your web browser. Turn it on to take full advantage of this site, then refresh the page.