Binary trading has been so popular in recent years due to its simplicity and availability. In fact, binary trading is for everyone who would like to become a trader and earn money. Many brokers and platforms are available, which offer different options for all traders. In the core of binary trading are the assets.
Every binary options platform offers different assets, but in general, they all revolve around the same types. There‘s something for everyone – you just need to find the assets which you would like to invest in and which you are familiar with. Let‘s take a look at the most popular assets which binary options platforms offer!
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Currency trading is the most common type of trading which you can find on all binary options platforms. Currency trading means that you as a trader are investing on the currency pairs, and their exchange rate. Depending on the platform you are using, you can invest in different currency pairs, such as USD/EUR, USD/GBP, EUR/GBP, USD/JPY etc.
This type of asset is known by the name Foreign Exchange, FOREX or FX. With this type of trading, you are directly comparing the value of one currency with the other, or in other words, you are predicting if one currency will become stronger than the other one in a given time frame – for example, you are supposed to make a prediction about the USD/EUR currency pair. What do you think – will the EUR go up compared to USD, or will it be the other way around? Currency exchange is the most popular trading asset since it is the easiest to understand.
Trading with stocks is not a new thing, since many investors have been working and trading with stocks for years. However, binary stock trading is a relatively new thing which investors find really profitable and exciting. However, you first need to understand how stocks work, since stocks are a preferred type of asset for the experienced investors.
Binary brokers offer different stocks which you can predict the price of. Among the most popular stock assets are Google stocks, Apple stocks, Coca Cola stocks, Deutsche Bank stocks etc. The selection of the stocks assets vary depending on the broker and the platform you are using.
Some offer just the most popular assets, while other, serious brokers even offer investments on local stocks, depending on the location of the trader and the country which the broker is situated in.
Using the preferred binary option type, the investor can make their predicaments for a certain asset from the category of stocks.
Commodities can be the perfect assets for those who are just entering the binary options trading world. They are a reliable low-risk investment method, and can serve you well for gaining experience before stepping up your game. The most popular assets from the commodities are gold, silver, oil, coffee, etc.
Commodity trading is considered a low-risk trading, since it is the easiest to predict according to many investors. Considering the current economic state in the world, the golden rule says that in the majority of cases, the value of the commodities will go up in the given time frame. However, even though it is a low-risk trading, it doesn‘t mean that it is risk-free! Keep that in mind!
Trading with indices is considered to be the most difficult type of trading. Why? Indices usually don‘t have a drastic change in their value; however, small changes which seem unnoticeable to the ordinary person can change a lot for investors. Indices prices can go up and down the entire time – and have really small changes in value, making it difficult to predict their value at the expiry time.
That is why indices are usually chosen only by the most experienced investors, and newbies are not advised to jump to trading with indices until they gain some experience and confidence.
Binary options brokers and platforms offer different indices to the traders, such as DAX-30, FTSE-100, DOW Jones, S&P 500 etc. The variety of the indices depends on the broker you have chosen. Serious binary brokers offer indices from many countries, such as USA, UK, Germany, Japan, France, etc.
Binary brokers offer these four categories of assets to its customers, but the vastness of each category depends on the broker you are working with. While Currencies and Commodities are considered to be relatively easier to trade with, still, the risk is always present.
On the other hand, Stocks and Indices are considered to be riskier, since their value can go either way in a spit of a second. If you are an experienced trader, you probably knew this already, but if you are new to the field, don‘t start your career by going big from the start. Choose the assets that you are comfortable with and gain experience. Good luck!