Listening room in a loft area?

I'm moving into a loft style apartment. I was thinking about making one of the raised loft bedrooms into a listening room. The problem is that the room opens up onto the living area beneath. The room is about 17X14' with vaulted ceilings.

Here is a link to the picture of the room:

I was considering putting the 2 speakers on the back wall so they face the balcony.

1. Will this room work with the opening/balcony?
2. Will adding a thick curtain above the balcony help?
3. I was thinking of Real Traps for the corners of the room and first reflection points. Will this help?

Any other feedback would be appreciated.
Any time you can add treatments in the first reflections it will help your listening room. To go one step further and treat for secondary refections is even better.
I think the room will work fine.
Just be open to changing it if it doesn't meet your expectations. My concern might be the refections behind your seating position. Good luck in your venture and keep us posted once it's done.
The speakers being used are Sonus Faber Cremona Auditor M. Given that the rear of the listening position will open onto huge room, how will this affect the sound?
I am in a loft uptown in NYC, so I have a bit of perspective. Why don't you put the system in the main room downstairs. The high ceilings will work very nicely. You just have to make sure to treat all corners in the entire space. Even listening under the lower ceiling height lofted area is a compromise in my setup. If you're still in NYC come up for a listen, though be warned, hearing my TAD CR1's (which I sell) may cause a sudden desire to liquidate other assets.