Binary Options Assets Explained
What are the Binary Options Assets you can invest in?
There are many Binary assets you can invest in let’s see what they are:
Binary Options Stocks Trading
Stocks are one of the most popular, if not the most popular asset to invest in. Stocks are shares generated by a company for raising capital. When the company you invested in made a lot of money, then you make money too. The most common companies people invest in are the big ones or giants if you may, like Apple Inc. and Microsoft. However, make sure to keep an eye for some promising companies. These companies might not be worth billions of dollars, but they have the potential for financial growth.
The Binary Options made it a lot easier for people to have access to stocks. Dealing with underlying assets in stocks is a pain in the neck. In Binary options, traders don’t have to buy these assets and their decision to invest is predicated on the assumption that the share price will rise or fall. It is important to conduct your own analyses when trading in stocks. Check all the graphs, the numbers and everything. Monitor past price movements and find something interesting. These are the components you need to keep an eye on. Other components include economic stature, supply and demand and other factors that may affect the trade. When it comes to stocks, there is no sure thing. But you can minimize the risk and make some money, big money if you can.
Binary Options Commodities Trading
These are the goods or physical products you invest in. The most common commodities these days are most likely agricultural products or raw materials. Commodities is a lot easier to track compared to stocks. However, commodities are easily affected by factors like the government, calamities, war and supply and demand. This asset can be tricky especially when it comes to getting access to the margin requirements and the volatility. Good thing there’s no margin when it comes to oil. The main contribution of the binary options to traders in the commodities section is that traders can trade even without large accounts.
Make sure not to put everything you have into one investment. You could lose up to 85% of your investment in just a second. Keep it small and safe. Despite all the good news you hear on TV, change is relentless when it comes to commodities. Yes, stocks are much complicated, but commodities post more risks.
Currencies Trading (Foreign Exchange or FOREX)
Currency trade is done with pairs. Currency pairs have their own market. For example, one market for US Dollar and Yen, one market for Australian Dollars and US Dollars, one market for Euro and Japanese Yen. The most popular pairs when it comes to FOREX trade in binary option is USD (US DOLLAR) – CAD (Canadian Dollar), USD (US DOLLAR) – JPY (JAPANESE YEN) and EUR (EURO) – USD (US DOLLAR).
The component to consider in these markets is the expiration value. You buy and sell dollars that would work on your favor. You want the exchange rate to rise for you to make profit. This asset is an endless game of prediction and daily monitoring. This is where those statistics presented by business news comes in handy. You see currency abbreviations and then beside them are green or red arrows. You need to find the currency you exchanged, hope it’s a green arrow and rejoice.
We suggest that when you trade Currencies you check out the problems you might face in the currency trade like, transaction risks, leverage risks, interest rate, counterparty and even the economic stature of your country.
Take me to trade Currencies
Indices Trading (plural of Index)
This asset is actually a group of assets forming one market. You can invest into groups of stocks with productive performance. There are different kinds of indices or market indices if you will, such as bonds, investments and stocks. The key in this asset is the Market Index. This is a tool in the market that tracks stocks performance and narrows it down to the most promising one. That is where you put your investment. Forget about predictions, you are looking at the index in order to identify the situation of the market trends or assets. Many people involved in the stock market and binary options agree that Indices is the safest asset to invest in. The target to focus on is low-cost index funds. The other assets like stocks and commodities post risk of investing a huge capital. In Indices, investing big is actually considered good because of the low risk for high fees.
So what Asset Should I choose?
If you want to enter any of these assets, then you’d better consider everything. Binary assets are waves on market information and you won’t make any progress if you don’t know how things work. In this financial adventure you are your own boss. It is your decision in the end whether you want to push through with your investment or keep it in your pocket.
You can find more information and details in our educational center for beginners and you can be accustomed to the entire operation and movement of the market on our traders TV and on the economic calendar pages.
We advise you to start reading about the markets and analyze your choices. Keep it slow and don’t be an aggressive fool investing all your money to something which poses a risk. There is the contradicting fact that if you see a market trend, you grab it. Its fine but remember you use a safe platform like our Option500 trading platform with the proper algorithm.