The Most Popular Trading Assets For Binary Options

The sky’s the limit when you start trading binary options. You can pretty much buy and sell everything there is on the planet.

People can buy or sell commodities, currency pairs, stocks, etc. Have you learned about binary options? Then it’s time to start making money.

Of course, you cannot jump in the pool with both feet without knowing what you’re doing. That’s why we will list the best things you can trade today.

Gold

Gold has gone up since 2015 – but that doesn’t make it a very stable asset for binary options. Traders usually prefer this precious metal because of how volatile it is daily.

Another great thing about gold and binary options is their return. On average, trading gold offers a return of up to 85%. There’s a reason for that: there are a lot of risks involved in those trades.

Oil

Oil is one of the most traded commodities in binary options and its price movements are generally very stable and easy to predict.

Then again, there are various moving parts when it comes to oil and if one of them starts moving, they all do. Paying attention to them all is difficult for everyone, including experienced traders.

For example, geopolitical issues in the Middle East may affect oil. American crude oil inventory also affects this commodity. Learn about these factors before trading oil.

Silver

Silver is a very volatile asset similar to gold. Most of the supply of this precious metal comes from three countries: China, Mexico, and Peru. More than half the world’s silver comes from those countries. Because of that, their political climate affects prices.

That makes silver more exciting. Then again, it also makes it riskier and more problematic for beginners. We highly recommend staying away from precious metals until you have a firm grasp of binary options trading.

EUR/USD

There are close to six billion daily trades in USD and almost two billion in EUR. There’s a reason for that: the US Dollar and Euro are the most important currencies.

You may think billions of trades would bring a lot of instability to this market but you’d be wrong. The more trades there are, the easier it is to predict what will happen. Beginner traders learning about binary options will get a lot of experience if they pay attention to this currency pair.

GBP/USD

An alternative to the EUR/USD currency pair is the GBP/USD one. It’s very stable and follows the same direction the EUR/USD does. Traders pay more attention to this currency pair when the EUR/USD isn’t as expected.

Before switching to this alternative, make sure the issues come from the Euro and not the US Dollar. If that’s the case, the next option is perfect for you.

EUR/JPY

Are you looking for more excitement in your trades? Both EUR/JPY and GBP/JPY have some volatility. It’s not for everyone but it may be the right pick.

Beginner traders should not look for volatile markets just yet, though! You should pick other currency pairs for now. Make sure you pay attention to this currency pair but don’t trade it until you have more experience. Binary options on crypto are also becoming more popular.

Dow Jones

You probably heard about the Dow Jones. It’s one of the most important indices of all time.

It represents thirty of the best American companies and is a volatile place to trade. We highly suggest beginner traders stay away from this index until they have a lot of experience.

FTSE

The FTSE is not as big as the Dow Jones but traders prefer it because of its stability. Then again, since it’s a UK-based index, you should know everything about the United Kingdom economy before you start making big decisions.

The great thing about this index is how varied it is. It represents 100 of the UK’s best companies and none of them is big enough to create changes in this market on its own. Because of that, you can better predict what will happen according to overall market trends.

S&P500

The S&P 500 Index has a long-term average growth of more than 100% yearly. Study that number before going against it.

The great thing about the S&P 500 is you know it’ll almost certainly go up over time. It’d be somewhat foolish to say it’ll go down in the long term. Then again, anything can happen! Remember, the S&P 500 has an average growth of 100% and often reaches 200%.

It’d be impossible for us to list the best stocks for binary options because there are too many. It’s easier to consider what to recommend for other trades because anyone can narrow it down.

Nevertheless, we can guide you to make the perfect pick. Consider three things before picking a stock:

• A company’s earnings report is an easy way to see how it is doing and where it is going.
• How is the global market doing? What about the local one? Pay attention to both before making a decision.
• No company can survive a political crisis without a scratch. Elections and regime change are volatile events so tread carefully.

Can you be profitable with binary options?

Absolutely! Before diving into the deep end, make sure you take your time and learn about trading. Otherwise, you will lose money trading binary options. Let me be honest. The hardest part comes at the beginning. I lost a lot of money when I traded for the first time.

Little by little, I became better, though. You can do the same. Unfortunately, losing money is part of the learning curve. Make sure you don’t overdo it and lose more than you can handle!

How do binary traders make money?

Binary options are easy to understand. A trader will decide whether to go for or against an asset. So, let’s say you think gold will be worth $100 more in a month. If, after a month, it goes up at least $100, you’ll get your money.

Otherwise, you lose it. You can do that with commodities, stocks, indices, and more. If that seems confusing, don’t worry. Binary options take a while to learn.

What is the best strategy for binary options?

There’s no right or wrong strategy when trading binary options. The important thing is to figure out the best approach for you. Some do day trading, and others prefer to trade every five minutes. Some traders go long for months and make a profit that way.

What strategy makes you feel comfortable? The only way to find out is to learn and trade for a while and figure it out. Don’t worry about losing, as you can recover some of the money you lost in binary options trading.

Are binary options the same as forex?

The forex market can be part of the binary options world if you want it to be. Let’s put it this way. The forex market is a thing on its own. You can include currency pairs when you’re trading binary options.

Because of that, forex goes into that world too. Beginners will have a hard time choosing either binary options or forex first. Then again, most traders prefer to focus on commodities and stocks when trading binary options.

Are binary options better than forex?

There are no right or wrong choices here. It’s all about what you prefer! When I was a beginner, I wanted to know which was better too but then I realized it all comes down to personal preference.

Try both worlds and see which one you like the most. Remember, there’s no need to choose one alone! You can play around in both. A great way to start in binary options trading is to profit while investing no money.

Are binary options legal?

Absolutely! You will have no issues as long as you trade using regulated brokers. Research before you register on any website. You can find information online. Make sure you find legal places to trade.

Otherwise, you may end up falling for a scam or worse. When in doubt, it’s always a good idea to talk to a lawyer. That way, you can trade with peace of mind!