Binary options require you to make correct predictions about the future price movements of specific assets. In this article, Binary Options Assets, we offer an introduction to the different kinds of assets that can form the basis of binary options.
A stock is a share in a company. It is issued in order to raise capital. Investors can purchase stocks, thereby gaining ownership of a part of the corporation in question.
When you invest in a binary option, you make a prediction as to where you think the price of the stock is going to move during a set time period.
Examples of stocks: Google, Apple, Microsoft
A commodity is a type of important trading goods. Major commodities include precious metals like gold and silver, foodstuffs like wheat and coffee beans, and natural resources like crude oil.
The price of a commodity can be heavily influenced by global news events. If you have a prediction as to where the price of a commodity is likely to move, you can invest in a corresponding binary option.
Examples: Crude oil, coffee beans, wheat, silver, gold
You can start trading now, or read the rest of the article beneath this table…
These are not really assets in the normal meaning of the world. An index in this contest refers to the prices of a stock exchange, or a certain group of companies listed on a stock exchange. Also commodities exchanges have indices.
You can invest in binary options that ask you to predict whether a specific index will move up or down during a certain time period.
Examples: Dow Jones, FTSE 100, DAX 30, NASDAQ
Currencies are the different kinds of money issued and used in various countries around the world. In binary options, currencies are always traded in pairs. In other words, you will be making a prediction as to how the price of one currency, for example the US dollar, will perform in relation to another currency, for example the Yen.
This sort of trading is immensely popular. Currency pairs are often considered the “easiest” assets to understand and come to grips to for inexperienced traders.
Examples: USD/GBP, USD/EUR, USD/CAD, EUR/GBP, EUR/JPY, and so on.