For those amateur traders who are afraid to get their feet wet in the complex financial trading platforms and wish to make quick money using stock trading binary option is for sure their only option available today. The outcomes involved in this form of financial trading are limited to that of a profit or a possible loss for the trader. All the trader has to do is purchase a contract from the broker with a purchase or a sell option make prediction about the price movement of the underlying asset on which investment was made. If the trader makes a right call then he makes money otherwise not. It is not as simple when it comes to purchasing the stocks in real for binary option trading, as not all stocks are available for binary option trading.
Stocks and binary option
Some of the listed stocks that are available in binary option trading platform include VIX and SPX whereas in case of American Stock Exchange, it lists the name of stocks under binary option by the name of FRO and names like Apple, Cisco, Citigroup, General electronics, Goldman Sachs, Google and many more are included in it. Binary option trading platform also involves trading in commodities and precious metals like Gold and Silver that traders consider to be quite safer and stable than other assets that are involved in the trading platform.
For those who are still unfamiliar with the working of binary option trading should know that binary option allows a trader to carry on short term trading in different kinds of shares and commodities based on a certain expiration period. Based on the calculations of the trader calls are made on the price movement of the asset before the expiry period agreed upon with the broker. If the trader thinks that the price is going to increase before the expiry period then he buys the asset and sells if he feels that the price is going to fall.
On making the right call, the trader receives profit on the contracts he purchases from the broker. Generally, the percentage of returns in a contract is always mentioned to the trader and it varies between the percentages of 75 percent to 80 percent depending on the rate offered by the broker. The sale and purchase of metals and energy shares are involved in binary option form of trading while the progress of the same can be easily monitored with the help of NYME, which is known as New York Mercantile Exchange.
Now as per the present condition of the economy, most of the binary option traders prefer to invest in foreign currencies, as they are reliable and safe to trade with whereas large investments in Crude oil and natural gas stocks have also been termed as fruitful by many professional traders.