Trading in binary options centers around what the price of various assets are doing on the global market and the purchaser is simply trying to predict the outcome of price of the assets. Will the price of trhe asset go up or down in a specified timeframe. In binary options trading there are four types of assets: currency pair, stocks, indices and commodities.
Currency or binary option are the most popular traded assets in binary options trading. Currency pair is the exchange rate or quoted price between two currencies. This quote will lfuctuates from day to day. The first currency in the pair is called the "base currency" and the second currency in the pair is called the "quote currency". For example, currency pairs are usually denoted in a format similar to this one. The the EUR/USD currency pair. This is the popular EURO - U.S. Dollar currency pair weitten in the International Standard Organization (ISO) format. The value of the first or base currency is always one or one unit of that currency. The value of the second currency is the exchange rate or how many units equals the base currency. For example, a quote of EUR/USD 1.0950 means that one EURO is equal to $1.10.
The USD currency paired with another currency are generally the mos popylar of the currency pairs traded since the US economy is one the largest and strongest in the world market. Other commonly traded curriencies are the Euro, New Zealand dollar, the Canadian dollar, the Sqiss Franc, the British pound, the Japanese yen and the Australian dollar.
Stocks are the most familiar form of trading in both Forex and binary options trading. They are less riskier jam trading in the Forex because you do not buy and hold stocks in binary options trading. The purchaser just perfect whether the stock the price of a particular company will be up or down after a specified timeframe, usually a day, week, month or even a year. These are short term predictions.
Indices are a composed of a group of companies where the price of the indices are based on the average price of assets in the group. Examples of indices are the Standard & Poor's 500 and DJ Wilshire 500.
Commodities are raw material or agricultural products brought and sold in the world market. Gold, silver, platinum and crude oil are typical raw materials. Sugar and whiter examples of agricultural products brought and sold in the market. The price of commodities are the supply and demand for these products in the world. Sometimes their prices are affected by major events in the world.
As you can see, binary options traders have a variety of assets or instruments to predict the price outcome to make a profit.
Indices are a composed of a group of companies where the price of the indices are based on the average price of assets in the group. Examples of indices are the Standard & Poor's 500 and DJ Wilshire 500.
Commodities are raw material or agricultural products brought and sold in the world market. Gold, silver, platinum and crude oil are typical raw materials. Sugar and whiter examples of agricultural products brought and sold in the market. The price of commodities are the supply and demand for these products in the world. Sometimes their prices are affected by major events in the world.
As you can see, binary options traders have a variety of assets or instruments to predict the price outcome to make a profit.
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