Binary Options Pricing

Why Binary options are becoming more and more popular?

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IFTA Journal, 2013 Edition

In this study, we investigate the presence of psychological barriers in the equity indices of 10 Asian Markets over a 10 year period from 2001-2011. This investigation was conducted through the use of uniformity tests, barrier proximity tests and tests on the predictability of stock returns. We have found evidence for barriers at the 1000 level for 6 of these markets (JKSE, KLSE, N225, STI, KS11, TWII) and at the 100 level for 4 of these markets (AORD, JKSE, KLSE, STI). However, while there may be evidence of psychological barriers, there is little evidence for the predictability of stock returns induced by the presence of these psychological barriers.

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