Binary options: Basic Types and Underlying Asset

At the first gaze of the beginner, all underlying assets in the trade terminal of the binary options broker are as like as two peas in a pod. One and the same chart, buttons and arrows. And, it seems, there is no any difference, what asset to use in case of the transaction. But it's not so. To underestimate a difference —it means to doom yourself to losses from the very first steps. That is why this section was opened by us; we will consider each popular underlying asset in details in it.

What is considered under the underlying asset?

Previously we will remind that binary options — it is the derivative tool of the financial market. As transactions on it are arranged documentary (in a contract type), it is natural that they have any cost. This standard of value also is called underlying financial product. If the formulation seems to you a little abstruse, we will simplify it. These are currency pairs, the stock exchange indexes, commodity raw material resources and shares. Pull it all together; it is all that can be traded in the market.

  • The first group of assets is met everywhere and doesn't need the explanation. These are the currencies of foreign states connected in pairs. And the cost of such asset shows a price ratio of both currencies. In other words, the cost of USDRUR 35 shows in how many time the American dollar is more expensive than Russian ruble;
  • The stock exchange index — is the most logical underlying asset. Simply some largest shares, which total cost is the stock exchange index gather in one "basket".
  • As commodity assets were always traded, it is the idle one from all underlying assets. Gold, oil, wheat, coffee —all of them are the examples of commodities by which it is possible to conclude binary options transactions;
  • Shares of the companies provided in the stock market, can also be traded by means of binary options. Sure, the transaction on them won't help to buy Microsoft or Apple "slice", but this underlying financial product will give the chance to participate in a corporation profit part.

Work with underlying assets

Usually beginners aren't recommended to start trading in the option market thoughtlessly. Experienced masters advise to look narrowly at all assets, to group them in the speed reaction to events and extents of coincidence to your forecast. Gradually the most clear and profitable personally for you will be distinguished from them. It's quite slow process.

Our section will allow beginners to optimize the period of the underlying assets analysis. Specialists of the company have already classified everything and allocated the most important in behavior of each of them. Relying on this analysis, you will be able to accelerate training process of the market and to pass to a trading stage actually.

 

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