One of the big advantages to trading with binary options is that you can trade on a wide range of different financial markets from the convenience of a single account. This is largely the result of the way in which binary options work. As contracts don’t involve a direct investment in the underlying asset, it is easy for brokers to offer on virtually any assets that traders want to trade.
This has an additional benefit in that many assets that have traditionally been hard to gain access to can now be traded from a binary options account. A good example of this are the many commodities, such as gold, oil and wheat, which have proven difficult to gain access to for the majority of investors.
The range of assets that you can trade at binary options brokers is increasing all the time. While there is a lot of commonality between most brokers, it pays to take a look at what is referred to as the brokers Asset Index. This lists all of the assets that the broker makes contracts available on.
A popular trading asset are market Indices. These include all of the major global indices from the world’s major financial markets. Included within this category are the leading financial Indices such as the Dow Jones, NASDAQ, FTSE and Nikkei. These are often a first choice for traders as it is easy to get information on these markets and they tend to show lower levels of volatility than individual stock assets or currency pairs.
The foreign exchange markets have increased in prominence among retail traders in recent years and are now one of the most traded markets. They can be accessed twenty four hours per day which offers the opportunity to trade on them around the clock. they can prove volatile which is why many traders like to trade them with the fixed level of risk that binary options offers. The most traded currency pairs include the EUR/USD, USD/JPY, GBP/USD and USD/CHF.
In terms of assets, this tends to be the biggest class, with brokers often offering up to 50 or more stocks for trading. The exact range offered by each broker varies, but you will be sure to find a selection of some of the biggest names from around the globe. Some of the world’s biggest companies such as Google, Exxon Mobile, Microsoft, BMW and JPMorgan can be traded through the use of binary options. These large bell weather stocks are widely reported on and therefore are a good choice for developing a strategy to trade.
Commodities are the least covered of all the major assets, although you will find the most popular hard commodities including Gold and Oil available at most brokers. Increasingly it is also possible to trade what are known as ‘soft commodities’ at many brokers. These include cotton, coffee, wheat and sugar. Traditionally these markets have been hard to gain access to, requiring minimum investment levels. However with binary options you can trade them from just a few dollars.