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  1. #1
    Moderator Kolyo's Avatar

    dollars 1 Interesting Assets Education Thread !!!

    Hi guys,

    I am starting a new thread here with the aim to help educating traders about some more exotic and less known asset classes.

    Today I will start with bonds and more specially with the US-Treasury bonds. They are few different types: T-Bonds (the longest term maturity, 30 years), than 10Years Bonds, 5Y and 2Y bonds. The shorter the duration of the bonds the smaller is the interest payment they have. There are also some other types like T-Bills (Treasury bills) and TIPS (Treasury Inflation Protected Securities) for which you may read more here:
    http://en.wikipedia.org/wiki/United_...asury_security

    I am not aware are they available for Binary Options trading but surely they will appear soon in the asset lists of the best brokers because they are some of the most traded instruments in the world
    "The goal of a successful trader is to make the best trades. Money is secondary." - Alexander Elder

  2. #2
    Moderator Kolyo's Avatar
    The next Asset that I would like to discuss with you here is the VIX Index.

    See a little bit more on it in Wikipedia here http://en.wikipedia.org/wiki/VIX

    The index was introduced by academic researchers in 1989 and from 1993 it became a tradable instrument on CBOE by real time calculation of the index.

    Now what is it and what does it mean if we say VIX is rising above 20 like now or VIX is low?

    Here is the simple explanation: The VIX is quoted in percentage points and translates, roughly, to the expected movement (with the assumption of 68% likelihood i.e. one standard deviation) in the S&P 500 index over the next 30-day period, which is then annualized. For example, if the VIX is 15, this represents an expected annualized change, with a 68% probability, of less than 15% over the next 30 days; thus one can infer that the index option markets expect the S&P 500 to move up or down 15%/√12 = 4.33% over the next 30-day period.

    The price of call and put options can be used to calculate implied volatility, because volatility is one of the factors used to calculate the value of these options. Higher (or lower) volatility of the underlying security makes an option more (or less) valuable, because there is a greater (or smaller) probability that the option will expire in the money (i.e., with a market value above zero). Thus, a higher option price implies greater volatility, other things being equal.
    "The goal of a successful trader is to make the best trades. Money is secondary." - Alexander Elder

  3. #3
    Legendry Member milos's Avatar
    Thank you Kolyo. You always provide nice links. I'm familiar about FED bond buying program. It were published economic data at forexfactory.com about bonds in the euro zone and the US. Bonds can be represented good market movers for daily binary options trading.It is needed to understand to use data.

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