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Analytical Modeling and Empirical Analysis of Binary Options Strategies

Author

Listed:
  • Gurdal Ertek

    (College of Business and Economics, United Arab Emirates University, Al Ain P.O. Box 15551, United Arab Emirates)

  • Aysha Al-Kaabi

    (College of Business and Economics, United Arab Emirates University, Al Ain P.O. Box 15551, United Arab Emirates)

  • Aktham Issa Maghyereh

    (College of Business and Economics, United Arab Emirates University, Al Ain P.O. Box 15551, United Arab Emirates)

Abstract

This study analyzes binary option investment strategies by developing mathematical formalism and formulating analytical models. The binary outcome of binary options represents either an increase or a decrease in a parameter, typically an asset or derivative. The investor receives only partial returns if the prediction is correct but loses all the investment otherwise. Mainstream research on binary options aims to develop the best dynamic trading strategies. This study focuses on static tactical easy-to-implement strategies and investigates the performance of such strategies in relation to prediction accuracy, payout percentage, and investment strategy decisions.

Suggested Citation

  • Gurdal Ertek & Aysha Al-Kaabi & Aktham Issa Maghyereh, 2022. "Analytical Modeling and Empirical Analysis of Binary Options Strategies," Future Internet, MDPI, vol. 14(7), pages 1-23, July.
    • Handle: RePEc:gam:jftint:v:14:y:2022:i:7:p:208-:d:856735
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    References listed on IDEAS

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