Many different types of binary options to trade with, you are going to come across online. In this article, we intend to provide you a brief summary of all the types of binary options so that you can choose the right one for you.
Types of Binary Options | Indices Binary Options
Traders very often choose indices as their underlying asset. There are plenty of Stock Exchanges around the world, and trading stock market indices has become very popular among the traders. Here, the profit depends on the prediction– whether the price of the stock and shares is going above or beneath the price, on which the trading was set.
Types of Binary Options | Benefits of Indices Trading
Trading indices is kind of different experience than trading with other binary options. There are few advantages hidden in it.
1) Trading indices requires considerably less research work. You can choose any Position, Long or Short, rather than researching a lot on the Equity.
2) Due to multifariousness within a variety of national and international indices, the risk factor is quite less than other types of options trading. As no single stock holds complete influence on the index, stability has been sustained.
3) Indices trading comprises a collection of stock making up the particular index while stock trading includes buying an individual stock from specific companies. It is clear, trading indices option, you have the opportunity to earn greater leverage than trading stock.
Indices to trade with:
After you dive in indices trading, you will come across many indices options online. Among them, most popularly traded indices options are CAC 4, Dow Jones, DAX, FTSE 100, Hang Seng, and NASDAQ.
Types of Binary Options | Currency and Forex Trading Options:
Among all the binary options markets, Forex market (Foreign Exchange Market) is the largest and most liquid. The average traded value of currencies in Forex market is above 1.9 trillion/day. You can find all types of currencies of the world here. Thus, it is an over-the-counter market, where people trade the value of two different currencies against each other.
Types of Binary Options | Benefits of Forex Trading
1) It is one of the largest financial markets.
2) If you like to enhance liquidity in your business, trading currencies will be your best option.
3) Forex market is open for 24 hours. Each broker has his own time of trading. It helps the traders, to participate in trading, at any time of the day and night. But most traders buy or sell currencies from 8 a.m.-4 p.m. according to their local time zone.
4) You can easily manage your risk factors or learn avoid them.
Types of Binary Options | Mostly traded pair currency
In Forex market, you can pair up any two major currencies—US Dollar, Japanese Yen, UK Pounds Sterling, European Euro, Australian and Canadian Dollars, etc. But the most commonly traded currency pairs are EUR/USD, JPY/USD, AUD/USD, CAD/USD, GBP/USD etc. Among them, EUR/USD is the most traded and the most liquid one.
Types of Binary Options | Commodity Binary Options
Over the past few years, traders’ sparkling interest in commodity options has been growing rapidly. When, you buy a commodity ( gold, silver, copper, crude oil etc.), it does not mean that you are buying the asset itself. You are buying the value of the fixed commodity, over a set of period of time. And this enhances the accessibility of commodity options trading, globally. The most advantage of
What kind of commodities can you trade?
Metal— Commodity options trading gives you the opportunity to trade with Gold, Silver, and Copper with limited risk.
Energies— Using binary options and bull spread, you can trade on the energies like Crude Oil and Natural Gas where the risk will be low and collateral.
Agricultural Commodities— Corn and Soybean are the agricultural commodities to trade. The risk factor is also minimal here. You can use the bull spread to earn more profit.
Types of Binary Options | Individual Stocks Binary Options
Purchasing stocks and shares is a very commonly hobby as well as a profitable business, to many people around the world. It is the most popular binary options trading. While trading with Securities, you have to be right about the direction of the price movement, as well as about the timing.
The most traded stocks— It is the largest options market, including most well known and famous companies making up the volume of trading. Companies like Microsoft, Toyota Motors, Vodaphone, Apple, Google, Nike, Coca-Cola, and even Walt Disney, are giving you the opportunity to trade stocks with them.
Social Media Stocks— Many binary options trading sites, even allow you to trade with the share prices of social media websites—- Facebook, Twitter, etc. If you are interested, you can dive in.
Banking Binary options trading— Banking industry is considered to be the most volatile sector, and this volatility, attracts traders to buy and sell banking stock and shares. Most commonly traded bank based binary options are, Goldman Sachs, Barclays and J P Morgan.
Types of Binary Options | What Profit Can one Make Trading Binary Options?
Binary options trading is not gambling. Here, the trading is done following different strategies. Your option may expire in the money or out of the money. Both can happen. But, if you trade following the right strategy, managing risks, then the sky is the limit in case of earning profit. You may even make 80% profit from a single trade. It also depends on which broker site you choose, and what amount of profit they are offering. Therefore, the most necessary and mandatory part is, to select a broker site having the potential to give you maximum profit.