Answers for Quizzes in Guide to Trading Nadex Binary Options book.
Chapter 2 Answers:
- $100
- Higher
- Short
- Long
- Lower
- False. Binary Options do not use stops because you limit your risk on entry.
- $55 (85 – 30)
- Sell
- $5 (If your risk was $40, that means the price of the binary was $60. $60 – $55 = $5)
- No. 2100 is equal to 2100 not greater than 2100.
- Yes, short positions can equal the strike price.
- Buy
- False
- 100 – entry price
- 100 – risk on entry
- Offer price or entry price
- 100 – Bid or entry price
- False
Chapter 3 Answers:
- Out of the Money
- At the Money
- In the Money
- OTM
- ITM
- ATM
- ITM
- ATM
- Wall St 30
- Emini S&P 500
- Russell 2000
- USDJPY, EURUSD
- 12
- Weekly
- OTM
- ITM
Chapter 5:
- Green
- Red
- Open, close
- Bullish Pin
- Left
- Top of the body
- Bearish Outside Bar
- Bottom of the body
- Bottom of the body
- Higher than the close of Bar #2
- Top of the body
- Bearish PIN
- High
- Up
- Right
- Low
- False
- False
- High
- False
- Lower than the low of bar #2
- True
- Outside
- Bullish Outside Bar
- Long Wick
- Down
- Low
Chapter 6
- Higher highs, higher lows
- Lower lows, lower highs
- Previous low
- Go upwards
- Resistance
- Support
- Congestion
- True
- True
- Higher timeframe Support
- Resistance
- Support
- Any three of the following: Bollinger Bands, Keltner Channels, Linear Regression Channels, Moving Averages, Average True Range, Pivot Lines, Fibonacci Lines, Triangles and Pennants
- Support
- Waves
- Resistance
- Highs, lows
- Retest for resistance
- Support
- Support
- Mid-range
- Identify a low risk entry
- False
- Trend
- Higher lows, lower lows
- Lower lows, higher lows
- Lower highs, higher highs
- Higher highs, lower highs



