Answer Key for Quizzes in the to Nadex Safer Environment book.

Chapter 6 Answers:

  1. $100
  2. Higher
  3. Short
  4. Long
  5. Lower
  6. False.  Binary Options do not use stops because you limit your risk on entry.
  7. $55 (85 – 30)
  8. Sell
  9. $5 (If your risk was $40, that means the price of the binary was $60.  $60 – $55 = $5)
  10. No.  2100 is equal to 2100 not greater than 2100.
  11. Yes, short positions can equal the strike price.
  12.  Buy
  13. False
  14. 100 – entry price
  15. 100 – risk on entry
  16. Offer price or entry price
  17. 100 – Bid or entry price
  18. False

Chapter 7 Answers:

  1. False
  2. False
  3. True
  4. False
  5. False
  6. Buy
  7. Sell
  8. Equal to or less than
  9. Greater than
  10. True
  11. Loss and Profit
  12. Emini Dow Jones
  13. Emini S&P 500
  14. Emini Nasdaq
  15. Emini Russell 2000
  16. Profit Potential
  17. Risk
  18. False

 Chapter 8 Answers:

  1. Higher highs, higher lows
  2. Lower lows, lower highs
  3. Previous low
  4. Go upwards
  5. Resistance
  6. Support
  7. Congestion
  8. True
  9. True
  10. Higher timeframe

Chapter 9 Answers:

  1.  Green
  2. Red
  3. Open, close
  4. Bullish Pin
  5. Left
  6. Top of the body
  7. Bearish Outside Bar
  8. Bottom of the body
  9. Bottom of the body
  10. Higher than the close of Bar #2
  11. Top of the body
  12. Bearish PIN
  13. High
  14. Up
  15. Right
  16. Low
  17. False
  18. False
  19. High
  20. False
  21. Lower than the low of bar #2
  22. True
  23. Outside
  24. Bullish Outside Bar
  25. Long Wick
  26. Down
  27. Low

Chapter 10 Answers:

  1. Support
  2. Resistance
  3. Any three of the following: Bollinger Bands, Keltner Channels, Linear Regression Channels, Moving Averages, Average True Range, Pivot Lines, Fibonacci Lines, Triangles and Pennants
  4. Support
  5. Waves
  6. Resistance
  7. Highs, lows
  8. Retest for resistance
  9. Support
  10. Support
  11. Mid-range
  12. Identify a low risk entry

Chapter 11 Answers:

  1. False
  2. Trend
  3. Higher lows, lower lows
  4. Lower lows, higher lows
  5. Lower highs, higher highs
  6. Higher highs, lower highs

  7. Hidden Divergence in a Downtrend

  8. Trend Divergence in an Uptrend

    Trend Divergence in an Uptrend

  9. Hidden Divergence in an Uptrend

    Hidden Divergence in an Uptrend

  10. Trend Divergence in a Downtrend

    Trend Divergence in a Downtrend