Asset lists – Best lists of binary option markets

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Successful trading involves many components. This includes the choice of broker, trading strategies, and the skills of the trader. Another equally important factor is the assets used. Brokerage companies offer a large selection of derivatives of various types, including major currency pairs, as well as corporate stocks, stock indices, etc.

Each asset has its own features concerning exchange rate formation, which in turn affect trading strategies. Therefore, experienced traders pay special attention to this, and they only trade on certain currency pairs at set times. This article will be devoted to a brief overview of popular assets. Also, recommendations on suitable choices will be given based on trading tactics, personal preferences, volatility, and other nuances.

As far as the technical implementation of binary options is concerned, in theory traders could use the rates of absolutely any assets. However, in this article we will not delve into the operating principles of options trading as that issue has already been discussed on our website. The standard asset set is limited to the following types:

  • currency pairs;
  • stock indices, currency and commodity exchanges;
  • shares of companies, for example, Apple or Microsoft;
  • commodities, including oil and gas;
  • precious metals, gold and silver, platinum;
  • cryptocurrencies;

Some brokers do allow what was mentioned in the beginning of the paragraph. They let you trade with such exotic goods as, for example, wheat or coffee. However, that is an exception to the rule, and the types listed above are standard and available from almost all brokers. At the same time, the range of available trading instruments in certain categories varies greatly and depends on the particular company. Let’s look at each type of asset listed in more detail.

Currency pairs

They are, without exaggeration, the most popular type of financial instrument used in trading. This special type of asset in the form of a currency pair is used on the internet on exchanges and futures markets. From the name it can be understood that we are talking about two assets that form a pair. That is true, and trades are conducted in two currencies where one of them is set against the other. For example, in the most popular pair of EUR/USD, the indicator is how many dollars one euro can purchase. This value is called the rate or quote.

Trading platforms offer their users a huge selection of currency pairs. Again, binary options play a role here specifically, because all user trades actually remain inside the system. However, the rates are real, and brokers receive them from official sources which in turn have a direct link to the world’s largest exchanges and national state-owned banks. In fact, you can create pairs of any currencies, but for options there are usually only those combinations that are traded on the classic exchanges.

Currency pairs offer a number of advantages, in particular, high volatility (exchange rate fluctuations during the day), an extensive range, interdependence and correlation, as well as versatility and the ability to use a variety of trading systems with them. As a result, absolutely all binary options brokers offer this type of asset. It is precisely these pairs that make up the necessary base that satisfies the vast majority of users. It is also worth mentioning that a considerable percentage of BO traders started trading on Forex. And that is an international exchange where trades are predominantly for currencies, although there are also other assets, but there are significantly less of them for options.

To make it clearer, let’s compare the volatility indicators of two popular currency pairs. Let’s start with the most popular among traders – EUR/USD. In a typical trading day, the intensity of price fluctuations is about 40-80 points. The euro usually shows a strong reaction against the backdrop of key news releases. Below is a screenshot of the Meta Trader terminal from the EUR/USD charts on the 30-minute timeframe.

There are also more volatile pairs. For example, GBP/JPY (the British pound paired with the Japanese yen). Often during the day, the intensity of the oscillations exceeds 100, and often 200 points as well. An example of the chart is given above. Sharp price jumps are clearly visible, and a similar situation is seen on the hourly chart.

Trading currency pairs on binary options

In fact, there is no fundamental difference in the approach to currency trading (when compared to all other assets). However, they are the most popular. The reason here lies in the convenience of using them. First, they are very well suited to both technical and fundamental methods of market analysis. Secondly, a high level of volatility significantly expands the horizon of opportunities from the point of view of traders.

Intense price fluctuations allow you to open a large number of trades in a short period of time. Namely, turbo options with expirations of less than 5 minutes are the most popular among BO traders. Constant rollbacks and uneven price movement on the chart provide lots of opportunities for the various strategies and techniques used by experienced traders. They include risk insurance, position hedging, etc. Such an approach makes it possible to, first of all, minimize financial losses in situations where it becomes obvious that the forecast was incorrect, and secondly, apply the most effective trading strategies with high percentages of profitable trades. Such systems are usually based on the simultaneous opening of two cross positions with the subsequent closure of one of them, which allows you to get part of the funds back, and the remaining losses will be covered by the profit from the opposite position.

The strategy of trading on the news is very popular among traders. And it doesn’t involve delving into the subtleties of fundamental analysis. The large portal Investing has developed a unique tool that collects information about key news events and displays it in a form that is concise, yet most informative in terms of trading. It is called the Economic Calendar. The advantage of this service is that, in addition to information about upcoming events, it provides forecasts on market reaction to news releases, as well as historical data.

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In addition, currency charts are characterized as well “behaved” in relation to the subsequent signals received as a result of applying methods of technical market analysis. For this purpose, traders use various indicators, scripts, as well as chart and visual analysis. Both methods are good in their own way. However, when trading on technical analysis signals, you shouldn’t forget about the Economic Calendar and make sure to periodically have a look there. Generally, when news is released the price usually behaves in an entirely unpredictable manner (concerning technical analysis techniques). However, a fundamental approach will you allow to predict such a situation in no time. Therefore, experienced traders always combine the two approaches to market analysis to get the best possible result.

Commodities

This type of asset originates from the very first commodity exchanges where real products were traded. They included grain, fuel and other goods. Precious metals are usually also included in this list, but we put them into a separate category at the beginning of this article. Most binary options brokers offer their clients oil, gold, and silver to trade. These tools are the most popular. There are a number of strategies that were developed specifically for precious metals – for gold and silver. But there are companies with a very wide range of assets in this category – natural gas, coal, wheat, sugar, and much more.

Commodity trading has its own characteristics. Commodities are usually chosen by those who apply fundamental methods of market analysis. From the point of view of technical analysis, the price chart is only partially suitable, then quite often periods of downtime are observed with subsequent sharp jumps. This is especially noticeable on small time intervals. Therefore, turbo options are practically never used for this.

However, in terms of analysis at a fundamental level, there are many opportunities. For example, the situation in the oil-extracting sector directly correlates to its price. If, for example, the shares of the world’s largest companies show a downward trend, then we should expect similar behavior from the Brent oil price. Similar studies can be conducted in other areas in addition to energy.

To ensure that trading raw materials is effective, it is necessary to make forecasts that take into account many factors. This is only possible for experienced traders who are capable of conducting detailed analysis of certain areas and niches of the market. Many nuances are taken into account. For example, if we are talking about food, then there is clearly pronounced seasonality. And this, in turn, allows you to open long positions using hedging and risk insurance. From all of this we can conclude that raw materials are not the right assets for beginners. However, a professional approach will make it possible to obtain forecasts of high accuracy. Fundamental analysis of commodity assets is easier than it is for currencies, because they are affected by relatively fewer factors.

Shares of companies and stock indices

Shares do not need any further introduction. This type of asset also enjoys moderate, stable popularity. As in the previous case, they are chosen by traders who analyze information about specific companies. A professional approach will allow you to catch hidden trends that soon lead to either increases or decreases in capitalization volumes.

As for classic investing in stocks, profits are earned only if their price increases. And when trading on binary options you can earn a profit in any situation. The main thing is that the direction of the forthcoming movement should be predicted in advance. Anticipating the behavior of the exchange rate is simple enough in some situations. For example, Apple shares almost always show a growth trend just before new products are presented. However, this does not guarantee a profit, because capitalization may begin to decline immediately afterwards if investors consider the products to be not as promising as expected. This example is used to understand the general principles of market analysis when trading assets of this type.

Exchange indices are a special type of asset which, in comparison to the types discussed above, are the least popular among traders. They represent the average value of a set of indicators in a certain sphere. For example, the Dow Jones Industrial Average forms its exchange rate by adding up the total capitalization of a few dozen of the largest companies in the US in the manufacturing sector. To effectively trade on indices, the trader needs to have a good understanding of the economy of that country, and they also have to delve into the subtleties of that particular production niche. This is definitely not suitable for beginners.

Cryptocurrencies

Recent years have seen a rapid increase in the popularity of cryptocurrencies. And binary options brokers are not sitting out on the sidelines, they, too, support this global trend. In 2020, leading companies added a number of trading assets with popular cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and others. Also, some brokers added functionality to deposit and withdraw funds via cryptowallets.

There is a lot of potential for this type of asset. Its distinctive feature is extremely high volatility. Such strong variability of the exchange rate over short time intervals is a novelty in the history of exchange trading. For example, at the end of 2020, there were days when the rate of Bitcoin changed within one day up to $5,000. That is hundreds and thousands of points on the chart. Such a situation would be impossible in principle for any other type of asset.

Cryptocurrency trading strategies

Unlike all the types of assets discussed above, cryptocurrencies do not have a unique link to the economic situation in a particular country. Of course, this has an effect, but there is no direct correlation. Therefore, the main factor affecting exchange rates is the demand for a particular currency among real investors. Also, good results are shown by the so-called logical pricing forecasting systems.

However, classic methods of market analysis work only partially for cryptocurrencies. As for minimal intervals (second intervals), the chart does not work at all in terms of finished candles forming in the correct shape. Therefore, the feasibility of using turbo options is in question, and the same applies to trading on small intervals in general. However, starting from medium intervals, the standard methods of technical analysis can be applied, which also show good efficiency. However, in general, the behavior of cryptocurrencies is difficult to predict using conventional oscillators and trend indicators

“General Risk Warning: Binary options trading carry a high level of risk and can result in the loss of all your funds.”

What You Need To Know About Binary Options Outside the U.S

What Do You Need To Know About Binary Options Outside the U.S?

Binary options let traders profit from price fluctuations in multiple global markets, but it’s important to understand the risks and rewards of these controversial and often-misunderstood financial instruments. Binary options bear little resemblance to traditional options, featuring different payouts, fees, and risks, as well as a unique liquidity structure and investment process.

Binary options traded outside the U.S. are also structured differently than those available on U.S. exchanges. They offer a viable alternative when speculating or hedging but only if the trader fully understands the two potential and opposing outcomes.

The Financial Industry Regulatory Authority (FINRA) summed up regulator skepticism about these exotic instruments, advising investors “to be particularly wary of non-U.S. companies that offer binary options trading platforms. These include trading applications with names that often imply an easy path to riches.” 

Key Takeaways

  • Binary options have a clear expiration date, time, and strike price.
  • Traders profit from price fluctuations in multiple global markets using binary options, though those traded outside the U.S. are structured differently than those available on U.S. exchanges.
  • Non-U.S. binary options typically have a fixed payout and risk, and are offered by individual brokers rather than directly on an exchange.
  • While typical high-low binary options are the most common type of binary option, international brokers typically offer several other types of binaries as well.

Binary options outside the U.S. are an alternative for speculating or hedging but come with advantages and disadvantages. The positives include a known risk and reward, no commissions, innumerable strike prices, and expiry dates. Negatives include non-ownership of the traded asset, little regulatory oversight, and a winning payout that is usually less than the loss on losing trades.

Understanding Binary Options Outside the U.S

What Are Binary Options?

Binary options are deceptively simple to understand, making them a popular choice for low-skilled traders. The most commonly traded instrument is a high-low or fixed-return option that provides access to stocks, indices, commodities, and foreign exchange.

These options have a clearly stated expiration date, time, and strike price. If a trader wagers correctly on the market’s direction and price at the time of expiration, they are paid a fixed return regardless of how much the instrument has moved since the transaction, while an incorrect wager loses the original investment.

The binary options trader buys a call when bullish on a stock, index, commodity, or currency pair, or a put on those instruments when bearish. For a call to make money, the market must trade above the strike price at the expiration time. For a put to make money, the market must trade below the strike price at the expiration time.

The broker discloses the strike price, expiration date, payout, and risk when the trade is first established. For most high-low binary options traded outside the U.S., the strike price is the current price or rate of the underlying financial product. Therefore, the trader is wagering whether the price on the expiration date will be higher or lower than the current price.

Binary Options Outside the US

Foreign Versus U.S. Binary Options

Non-U.S. binary options typically have a fixed payout and risk and are offered by individual brokers rather than directly on an exchange. These brokers profit from the difference between what they pay out on winning trades and what they collect on losing trades. While there are exceptions, these instruments are supposed to be held until expiration in an “all-or-nothing” payout structure.

Foreign brokers are not legally allowed to solicit U.S. residents unless registered with a U.S. regulatory body such as the Securities and Exchange Commission (SEC) or Commodities Futures Trading Commission (CFTC).

The Chicago Board Options Exchange (CBOE) began listing binary options for U.S. residents in 2008.   The SEC regulates the CBOE, which offers investors increased protection compared to over-the-counter markets. Chicago-based Nadex also runs a binary options exchange for U.S. residents, subject to oversight by the CFTC.

These options can be traded at any time, with the rate fluctuating between one and 100, based on the current probability of the position finishing in or out of the money. There is full transparency at all times and the trader can take the profit or loss they see on their screen prior to expiration.

They can also enter as the rate fluctuates, taking advantage of varying risk-to-reward scenarios, or hold until expiration and close the position with the maximum gain or loss documented at the time of entry. Each trade requires a willing buyer and seller because U.S. binary options trade through an exchange, which makes money through a fee that matches counter-parties.

High-Low Binary Option Example

Your analysis indicates the Standard & Poor’s 500 index will rally for the rest of the trading day and you to buy an index call option. It’s currently trading at 1,800 so you’re wagering the index’s price at expiration will be above that number. Since binary options are available for many time frames—from minutes to months away—you choose an expiration time or date that supports your analysis.

You choose an option that expires in 30 minutes, paying out 70% plus your original stake if the S&P 500 is above 1,800 at that time or you lose the entire stake if the S&P 500 is below 1,800. Minimum and maximum investments vary from broker to broker.

Say you invest $100 in the call that expires in 30 minutes. The S&P 500 price at expiration determines whether you make or lose money. The price at expiration may be the last quoted price, or the (bid + ask)/2. Each binary options broker outlines their own expiration price rules.

In this case, assume the last quote on the S&P 500 before expiration was 1,802. Therefore, you make a $70 profit (or 70% of $100) and maintain your original $100 investment. If the price finished below 1,800, you would lose your original $100 investment.

If the price expires exactly on the strike price, it is common for the trader to receive her/his money back with no profit or loss, although brokers may have different rules. The profit and/or original investment is automatically added to the trader’s account when the position is closed.

Other Types of Binary Options

The example above is for a typical high-low binary option—the most common type of binary option—outside the U.S. International brokers will typically offer several other types of binaries as well.

These include “one-touch” options, where the traded instrument needs to touch the strike price just once before expiration to make money. There is a target above and below the current price, so traders can pick which target they believe will be hit before the expiration date/time.

Meanwhile, a “range” binary option allows traders to select a price range the asset will trade within until expiration. A payout is received if price stays within the range, while the investment is lost if it exits the range.

As competition in the binary options space heats up, brokers are offering additional products that boast 50% to 500% payouts. While product structures and requirements may change, the risk and reward is always known at the trade’s outset, allowing the trader to potentially make more on a position than they lose. Of course, an option offering a 500% payout will be structured in such a way that the probability of winning the payout is very low.

Unlike their U.S. counterparts, some foreign brokers allow traders to exit positions before expiration, but most do not. Exiting a trade before expiration typically results in a lower payout (specified by broker) or small loss, but the trader won’t lose their entire investment.

The Upside and Downside

Risk and reward are known in advance, offering a major advantage. There are only two outcomes: win a fixed amount or lose a fixed amount, and there are generally no commissions or fees. They’re simple to use and there’s only one decision to make: Is the underlying asset going up or down?

In addition, there are also no liquidity concerns because the trader doesn’t own the underlying asset and brokers can offer innumerable strike prices and expiration times/dates, which is an attractive feature. The trader can also access multiple asset classes anytime a market is open somewhere in the world.

On the downside, the reward is always less than the risk when playing high-low binary options. As a result, the trader must be right a high percentage of the time to cover inevitable losses.

While payout and risk fluctuate from broker to broker and instrument to instrument, one thing remains constant: losing trades cost the trader more than they can make on winning trades. Other types of binary options may provide payouts where the reward is potentially greater than the risk but the percentage of winning trades will be lower.

Binary Option Brokers with Low Minimum Deposit

Without making large investment, binary options are the best way to earn a profit. Brokers offer a condition to deposit with minimum amount because most of the brokers try to attract the number of possible customers.

Those brokers who offer with minimum deposit of trading binary options shows their loyalty to their customers and in the beginning they allow to reduce the risk by investing the small amount and some of brokers offer with the deposit of $1, $5 or $10, which is the affordable amount for any of the trader at his first step in financial market. There are several brokerage companies that allow to open account with a deposit of $1-10 dollars and with this amount the trader can try to make a successful trading. Practice describes the statement that even with investing a small amount there is a chance to develop an activity that is successful, whenever on stock exchange or with binary options broker.

Best Brokers with the Minimum Deposit $1 – $10

Many traders pay attention to low minimum deposit while choosing broker. For the novice or average trader this gives an opportunity to start trading from scratch.

This way traders can check the integrity and reliability of trading platform with minimum deposit. The binary options cost is an important consideration for those traders who want to buy binary options at minimal cost of 1 dollar.

IQ Option – EU regulated broker with $1 minimum trade

IQ Option allows to enter financial market with the limited funds and provides traders with really innovative trading platform and customer support on 20 different languages. Broker minimum deposit is $10, in addition free demo account available to everyone. IQ Option is a highly reliable broker, regulated by CySEC.

OlympTrade – Binary Options with $10 initial deposit

OlympTrade is the another well-known broker started his business from scratch and with a history of vivid illustration that the person can achieve with high financial peaks with minimum option of $1 and deposit of $10 the beginners can proceed from demo account to real treading.

Binomo

Binomo attracts young and perspective customers with their ability to trade with trading binary option with deposit of $10 and $1 minimum deal amount. The company becomes popular in the beginning because it offers to start with minimum deposit and also offers free demo account that anyone can start using immediately.

Ayrex – $5 minimum deposit and high quality platform

Ayrex is one of the distinctive upcoming binary options brokers in the industry. The type of seriousness shown by their team will go a long way in taking them to new heights. The minimum deposit is $5 to start trading with the broker.

Binary.com – Start trading binary options with $5

For binary options trading the Binary.com is the oldest platform among all. To open an account with Binary.com you need to deposit with the amount $5 and this company with innovative products is developer in trading. The company keeps the clients funds in banks with AAA rates and ensures you with the complete safety on all the deposits, no matter on the sizes and without exception.

Some of the brokers like IQ Option, Binary or OlympTrade that offer with the simple solutions that don’t require of large expenditures but the profits from these brokers are not so high but for the traders who are experienced invaluable and are the beginners are the best option for them and who want to understand trading binary options with mechanics. Companies confidently occupy with the rating and a leading position of the binary option brokers with a minimum deposit.

Best Binary Options Brokers 2020:
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  • BINOMO
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    Only For Experienced Traders!

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