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Nonfarm Employment Report Tradingwith Binary Options & Temporal Functionalities

Author

Listed:
  • Vasiliki A. Basdekidou

Abstract

The main target of this paper is to discuss a short-term strategy for trading themonthly USA Nonfarm Employment Reports (NFP; Non-Farm Payrolls), by incorporatingbinary options and temporal warning dynamics & triggering trading functionalities (TTF). Theproposed trading strategy is not a fully documented trading system, because it is derived, as wellas it has been back-tested on USA Markets sample data (2000-2016) with an initial formaldefinition and documentation. The nonfarm employment reports are well known to create marketvolatility fostering short-term trading. Hence, a strategy based on binary options and these TTFfunctionalities offer great profit opportunities. The current paper contributes to corporatefinance literature by examining, analyzing and defining these TTF functionalities. For thispurpose, four categories of shareholders are regarded: The long-term investors, the short-termswing traders, the short-term momentary speculators, and the intraday speculators. Paperconcludes that, in daily and intraday NFP trading, the short-term swing traders -if theyincorporate binary options and apply the proposed TTF in their trading plans and strategies- arebenefit at the expense of momentary and intraday speculators, while the long-term investors arenot actually affected by the NFP release reports trading.

Suggested Citation

  • Vasiliki A. Basdekidou, 2016. "Nonfarm Employment Report Tradingwith Binary Options & Temporal Functionalities," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(18), pages 1-9.
  • Handle: RePEc:alu:journl:v:2:y:2016:i:18:p:9
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    Keywords

    Equity issue timing; Binary options; Liquidity; Market timing; Nonfarm employment reports; Temporal Trading Functionalities (TTF);

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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