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You have probably heard of many of them, but you just hadn’t realised. Financial assets constitute the basis of any Binary Options trade. There are a wide range of them available from commodities like gold and oil to stocks in companies like Apple Inc and Barclays. Ensuring you can find something that you are familiar with, are interested in, or have the knowledge about is a great start to your online binary options trading.
Companies issue shares of their enterprises in order to raise capital. A stock represents a share in the company which in turn can be traded (bought or sold) in order to release the cash stored in them. If a company is popular and performing well then the share values go up and if they are performing badly then they go down, which has higher risks.
Binary options trading removes some of the risk, as you are simply betting the amount you are willing to lose on the direction the stock is going to take, rather than buying the stock itself (which may have a higher value) and therefore is becoming popular in the area of financial spread betting and binary options.
Examples: Vodafone, LLoyds, British Petroleum PLC (BP), Google Inc, Barclays PLC, Apple Inc, Telefonica SA
Commodities are physical real world goods like gold, wheat and cotton. The price of these goods is affected daily by political and environmental factors and therefore fluctuations can be followed closely.
Examples: Gold, Silver, Oil, Cotton, Wheat, Platinum.
Indices represent an underlying financial market and how it will fluctuate from the base point – so whether it be up or down. Indices don’t rely on individual stocks or assets, but rather as a whole group of them, which tends to make them more stable and have less obvious peaks and troughs. This stability means that they are not as affected by daily environmental and political factors like commodities trading, but as we have seen in recent years, can quite dramatically turn one way or the other for longer periods of times.
Examples: FTSE-100, DAX-30, Dow Jones, Nasdaq Composite, IBEX-35
Currency is traded around the world and is fast becoming a popular as a trading commodity. Values in currencies vary against each other based on exchange rates and factors of how well a particular country or group of countries is doing economically. Therefore its fluctuations can generally be predicted. Currencies are traded against one another but only a few are recognised as major currencies. These include the British Pound, US Dollar, the Euro, Japanese Yen and the Swiss Franc.
Examples: AUD/USD, EUR/GBP, EUR/JPY, GBP/JPY, NZD/USD, EUR/USD, USD/GBP, USD/JPY, USD/CAD
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