Analytical Modeling and Empirical Analysis of Binary Options Strategies

Gurdal Ertek, Aysha Al-Kaabi and Aktham Maghyereh
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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

Future Internet, 2022, vol. 14, issue 7, 1-23

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.

Keywords: binary options; Monte Carlo simulation; knowledge discovery; visual analytics; big data (search for similar items in EconPapers)
JEL-codes: O3 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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