In the absence of assets to trade the binary options market could not even exist. Try to envision a marketplace with no products. This just would not work. Fortunately, there are hundreds of assets to trade each and every day. A key point to understand about these assets in the binary markets is that you don’t actually purchase a physical item. For instance, in the case that you are trading in the stock market and decide to purchase 300 shares of IBM, you are actually purchasing parcels of the company and are now considered one of the owners of this public company. Needless to say, your share is quite minimal, however you are still a shareholder. In binaries, it is completely different. What you’re doing is anticipating if the price of IBM will increase or decrease. This empowers you to be able to trade a great many assets without really taking possession.
The binary options market consists of four principal kinds of assets to trade. They are all traded in the same manner. Be sure to familiarize yourself with each of these prior to trading with any of them on a live trading account.
Let’s take a look first at Forex, the marketplace that contains all the currency pairs. They include the more prominent currency pairs such as the EUR/USD, GBP/USD, USD/JPY and several others. When trading in the Forex market you essentially own either one or the other of the pair. In other words, if you were to purchase euros you essentially acquire the euro currency based on that price and if you purchase the US Dollar you would essentially possess US dollars at that current price. The distinction between Spot Forex Trading and binary trading is the manner in which one buys and sells the asset. In binary options trading we are only predicting if either the value of the euro or the value of the dollar will go up or down.
Most of us would enjoy owning a commodity asset such as gold, however, owning the literal, tangible gold is not applicable here. Whenever trading gold on the binary markets you are attempting to estimate, if gold prices will go up or go down, in the same way as the other assets. If one were to invest $200 at a strike price of $1500, projecting that the price will go higher by the end of a 15 minute time period, you will receive a payout of $360 if the rate is at 80%. If you ended up losing this trade you would result in losing the full amount of your investment. This can also be described as all or nothing trading.
Indices are assets made up of stocks from select exchanges. The objective is to anticipate if that specific indices will rise up or down from the beginning strike price. These will each be open at different times, so keep that in mind when trading binary options.
The stock market is extensively traded in each and every single day. Here, one can trade countless stocks from all over the world. In the binary options markets, one can trade from a choice of stocks based only on the price. Using the illustration from above, you will actually trade the IBM strike price forecasting if the price is going to go up or down from it’s position at the point of entry. With such a large number of stocks available to choose from, be sure to have a thorough understanding of the stock you are trading prior to actually investing real funds in it.
We hope this gives you a better understanding of what to look for when opening your account. There are continually new assets being added to the marketplace, so it should not be very difficult to find a couple you would be interested to keep an eye on.