Lvo t 11 Unique Trading

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www.tradewithprecision.com

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MULTIPLY YOUR TRADING OPPORTUNITIES

LIMIT YOUR RISK

Using Binary Options

For Unique Trading

Opportunities

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Trade With Precision Risk WarningThis presentation is introductory in nature. It provides a high-level overview of some of the key matters relevantto trading the financial markets. This presentation provides general information only and does not take intoaccount your objectives, financial situation or needs. It is important for you to consider these matters beforemaking any trading or investment decisions.

This presentation is provided for educational purposes only. While examples may be taken from live market data,they are provided for illustrative and educational purposes only. Trade With Precision and its representatives arenot stockbrokers, financial or investment advisors and do not recommend any stocks, bonds, options, futures,CFDs, currencies or any securities of any kind. Past performance, whether actual or hypothetical, is no guaranteeof future performance or success.

Trading the financial markets can be risky and is not suitable for all investors. You should consider whether or nottrading the financial markets is suitable for you. Trade With Precision recommends that you seek independentadvice.

All material, logos and content is the property of Trade With Precision and cannot be used for other purposeswithout explicit written permission. You agree not to copy, reproduce, publish or otherwise disseminate inwhatsoever form this document or media or any of the training materials or information that you will receive in orrelated to the training, without the written consent of Trade With Precision. Information about Trade WithPrecision and their terms and conditions can be found at www.tradwithprecision.com/terms

If you do not accept these terms, please cease watching this presentation immediately.

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LIMIT YOUR RISK

Nadex Risk WarningFutures trading and options trading involve risk, which may result in financial loss, and are notsuitable 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

this webinar are not an offer, or a solicitation of an offer, to buy or sell any particular financialinstrument offered on Nadex. Past performance is not indicative of future results.

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44MULTIPLY YOUR TRADING OPPORTUNITIES

LIMIT YOUR RISK

Nadex Trade with Precision

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LIMIT YOUR RISK

Today’s Agenda:

• INTRODUCTION to Binary Options

• The BENEFITS of Trading Binary Options

• BINARY OPTIONS in Action

• START TRADING with NADEX today

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Introduction to

Binary Options

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Binary Options Risk & Reward

• A binary option represents a FIXED RISK and REWARD contract

It CANNOT trade below 0 or above 100

MAXIMUM RISK and REWARD are known (and clearly displayed) at

the time of placing the trade

Binary options will ALWAYS EXPIRE at 0 (if false) or 100 ( if true)

Each binary contract bought/sold represents $1.00 per point

movement in the contract with a POSSIBLE 100 POINTS total

movement

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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

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0 25 50 75 100

Lowest PriceLowest Price Highest PriceHighest Price

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Binary Options: Contract Components

1. Underlying asset(Could be any majorIndex future, forex,

commodity future)

1. Underlying asset(Could be any majorIndex future, forex,

commodity future)

2. Strike Price (chosen from a varietyof strike prices depending on the

trading scenario)

2. Strike Price (chosen from a varietyof strike prices depending on the

trading scenario)

3. Expiration time &date (Chosen from

Hourly, Daily,Weekly expirations)

3. Expiration time &date (Chosen from

Hourly, Daily,Weekly expirations)

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Selling Binaries: Reward vs. Risk

Sell at 25:

Max Risk = 75Reward:Risk =

0.33:1

Max Reward = 25Sell at 25:


0.33:1

Max Reward = 25

0 25 50 75 100

Sell at 75:Max Reward = 75


3:1

Sell at 75:


3:1

Max Reward = 75

0 25 50 75 100

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Buying Binaries: Reward vs. Risk

Buy at 75:


0.33:1

Max Reward = 25

Buy at 75:


0.33:1

Max Reward = 25

0 25 50 75 100

Buy at 25:Max Reward = 75


3:1

Buy at 25:


3:1

Max Reward = 75

0 25 50 75 100

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Binary Options: Contract Trade Outcomes

Sell Binary at 24.50Max Profi t = $24.50

Max Loss = $75.50

Sell Binary at 24.50Max Prof it = $24.50

Max Loss = $75.50

Buy Binary at 31.50

Max Profit = $68.50Max Loss = $31.50

Buy Binary at 31.50

Max Profit = $68.50Max Loss = $31.50

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Benefits of Trading

Binary Options

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Minimal Start Up Requirements

SMALL start-up capital requirements:

Trading on Nadex with as little as $100

NO PLATFORM FEES or minimum trading requirements

A SINGLE ACCOUNT to trade all markets

CONSOLIDATE your cash to trade forex, commodity futures,

& index futures

Invaluable supplemental tool for the EXPERIENCED investor

Great introductory tool to new markets for the NOVICE

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Simple Trade Execution

• Trade Execution is SIMPLE to understand:

If you think price is going UP, you BUY

If you think its going DOWN, you SELL

Single Click LIMIT ORDERS to takeprofit whether you are online or not

Take PROFIT on part or all of your

open position

Have multiple limit ordersTake advantage of‘BULL’ and ‘BEAR’

markets

Take advantage of‘BULL’ and ‘BEAR’

markets

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Risk Management

• FLEXIBILITY: Simple Money Management

You can pick your order price and MAXIMUM potential risk

Allows for a high degree of CONTROL and FLEXIBILITY

• RISK MANAGEMENT:

The very nature of a Binary Option contract LIMITS your RISK

Risk is ALWAYS known in advance!

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Overall Account Risk Limited

• When you place a trade your MAXIMUM RISK is clearly displayed

• This amount is then held as collateral If you BUY at 55 your max risk is 55 points, and $55 per contract

will be held until the trade is closed out

The seller on the other side has SOLD at 55 and will put up theother $45

In both cases, the exchange holds 100% COLLATERAL or the full

$100 pay out that is possible on the trade

This means that you CANNOT lose more money

than what is in your trading account.

All contracts are cash settled – no physicaldeliver

This means that you CANNOT lose more moneythan what is in your trading account.

All contracts are cash settled – no physicaldelivery17

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LIMIT YOUR RISK

Benefit: Ease of Access

• Trade worldwide markets from a SINGLE ACCOUNT

Index Futures (US 500, Wall St 30, FTSE 100, Japan 225, etc)

Currencies (EURUSD,

USDCHF, USDJPY, etc)

Commodity Futures

(Gold, Oil, Corn, etc)

Events (Non-Farm Payrolls,ECB Rate, etc)

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Prices Reflect Underlying Futures Market

EnergyEnergy

MetalsMetals

AgricultureAgriculture

* 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.19

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Prices Reflect Underlying Futures Market

Asian IndicesAsian Indices

EuropeanIndices

EuropeanIndices

US IndicesUS Indices

* 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.20

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Wide Range of Strike Prices – Hourly, Daily,WeeklyVarious contracts on Crude Oil

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This providesmultiple

reward:risk

opportunitiesfor you to

select fromdepending on

your tradesetup andtarget price

This providesmultiple

reward:risk

opportunitiesfor you to

select fromdepending onyour tradesetup and

target price

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Direct Market Access Exchange

• Nadex is the exchange and you trade with DIRECT MARKET ACCESS

• Place limits at your preferred trade price, even within the current

Bid/Offer SPREAD

• TIGHTEN SPREADS yourself - YOU can make your own market!

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Benefit: Traditional Stops not Required

• MAXIMUM dollar risk is known in advance if price moves against us

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Maximum loss(Long position)Maximum loss(Long position)

Maximum loss(Short position)

Maximum loss(Short position)

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Crude Oil Weekly Chart – Strike 112.75 Marked

A wide stop below weekly candle (approx105.90) on crude would mean a very bad R:R in

futures market – you need to predict a BIG move.

However you can still get over 1.5:1 on a Binaryfor just a very small upward move to 112.75 withno set stop and your downside risk 100% capped!

A wide stop below weekly candle (approx105.90) on crude would mean a very bad R:R infutures market – you need to predict a BIG move.

However you can still get over 1.5:1 on a Binary

for just a very small upward move to 112.75 withno set stop and your downside risk 100% capped!

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Crude Oil: Near Contract Expiration

• The 112.75 contract is now trading well in-the-money

• You can close now at 96 or let the contract expire

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Time Decay: Bullish Bias• Buying an “in-the-money” contract puts TIME

DECAY on your side, while underlying marketremains constant or goes up

• Buying an “out-of-the-money” contract putsTIME DECAY against you, which must be offsetby underlying market price increasing

• In either case, ensure that the STRIKE PRICE inyour view is likely be hit and/or maintained

“Out-of-the-Money”Market price must improveto above the strike or time

decay will erode value

“Out-of-the-Money”Market price must improveto above the strike or time

decay will erode value“In-the-Money”

Market price must

remain constant or go upand time decay willimprove value.

“In-the-Money”Market price must

remain constant or go upand time decay will

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Binary Options in Action

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Selecting the Optimal Contract

• Select contracts with the BEST reward to risk to suit your trade and

limit downside. E.g with a bullish bias you could:

– Buy the “in-the-money” strike @12080 for 50 (1:1 R:R)

– Or, based upon the setup, go “out-of-the-money” @ 12140 for 12 (8:1 R:R)

12080 strike @ 5012080 strike @ 50

12140 strike @ 1212140 strike @ 12

Which optionwould you

choose and why?

We will revisitthis very trade

example shortly

Which optionwould you

choose and why?

We will revisitthis very trade

example shortly

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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:

There can be a surprise to the downside and you still lose a

maximum of 10

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)

It is sensible to use limit orders to take profitaround news as prices can get very volatile

It is sensible to use limit orders to take profitaround news as prices can get very volatile30

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News Trade Pt 1 – Fed Decision Assume you had a bullishbias ahead of the Fed (duein minutes) and thought themarket would rally at least

40-50 points into the close.

Assume you had a bullishbias ahead of the Fed (duein minutes) and thought themarket would rally at least40-50 points into the close.

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News Trade Pt 2 - Minutes Later Markets moving inyour favor and closeto strike. Still a longtime to the close.

Markets moving inyour favor and closeto strike. Still a longtime to the close.

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News Trade Pt 3 – Near to Daily Close/ExpirationCan close outnow or hold

until expiration

Can close outnow or hold

until expiration

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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 occurbefore the close to at least the 50%

Fibonacci retracement level of 12140

• Possible Binaries to Trade:

Which contract will you trade and why?Which contract will you trade and why?34

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Reversal Trade Results

• YM reached a HIGH of 12159 @the 62% retracement level

• YM TRADING above 12140 at4:15pm

• Multiple opportunities to takePROFIT on the 12140 contractanywhere from $50-$97 or holduntil expiration

• Reward:Risk of 4:1 to 8:1 Note: this contractwould have beenvery volatile as ittraded so close to

the strike atexpiration

Note: this contractwould have beenvery volatile as ittraded so close to

the strike atexpiration

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Range Trade Short– The SetupBased on simple

technical analysis,what trade would you

take here?

Based on simple

technical analysis,what trade would you

take here?

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Range Trade Short – The Result

119.40 contract provided over 2:1R:R if sold at 71

119.40 contract provided over 2:1R:R if sold at 71

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Summary

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Summary: Binary Options with Nadex

1. Binary Options provide FIXED RISK without a traditional stoploss

2. Trade worldwide indices, foreign exchange, and commodity

futures from a single account

3. Nadex provides the trading PLATFORM with full DMA execution

4. Minimal capital outlay - contracts under $100

5. High reward trading with LIMITED downside – your risk is

ALWAYS capped!

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Start Trading With Nadex Today

• Phone us on 1 877 77 NADEX or 1 877 776 2339 or email

[email protected] with any further questions.

• 14 day demo accounts are available

CURRENT MEMBERS

1.Visit www.nadex.com2.Login to your account

3.Commence trading

CURRENT MEMBERS

1.Visit www.nadex.com2.Login to your account

3.Commence trading

NEW MEMBERS

1.Visit www.nadex.com2.Click on the orange box intop right saying ‘Sign Up’3.Complete your details andwe will respond via email

NEW MEMBERS

1.Visit www.nadex.com2.Click on the orange box in

top right saying ‘Sign Up’3.Complete your details andwe will respond via email

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Lvo t 11 Unique Trading