There are many great reasons to use Binary Options for trading and investment purposes. They offer a simple and understandable trading approach for which simple trading strategies can be devised allowing high returns to be made with controlled risk. Furthermore, what they also provide is access to a wide range of financial assets which can be traded with ease from just one trading account.
With an account with a binary options broker you can trade on all of the major financial markets. Brokers offer access to markets indices, currency pairs, stocks and commodities allowing the trader to profit from price movements in any one of these markets through the use of digital binary contracts. This ability to trade on a wide range of asset from one account makes it easy to port strategies between each market, allowing for the best opportunities to be taken on your account in each market.
The key asset classes offered in binary options are as follows –
- Forex currency pairs – Currency crosses such as EUR/USD, GBP/USD and USD/JPY. All brokers offer access to the major pairs with some also offering contracts more exotic currency crosses. Brokers tend to offer a wide range of contracts covering the most popular Forex pairs.
- Commodities – Gold and Oil tend to be the most traded commodity contracts. To gain access to a wider range of soft and hard commodities you will need to check out the brokers asset index. If you do you will find more exotic commodities available for trading with some companies including Platinum, Coffee, Wheat, Soya and Cotton.
- Global Market Indices -The main world financial indices such as the DOW, NASDAQ and FTSE are widely offered. You can however trade more exotic market indices with some brokers if required. Examples include the Hang Seng (Hong Kong) and EGX 30 (Egypt).
- Individual Global Stocks – Here brokers differ quite a bit in the range of stock contracts that are available. If this asset class is important to you then you will need to open an account with the best broker for contracts on global stocks.