The number of underlying assets available when choosing your binary option trading platform is a huge attraction to a site. The greater the variety: the more able an investor is to create a personal trade; the more possible it becomes to react to and profit from financial news; and the more enjoyable the trading experience. This is seen on the anyoption™’s platform which offers over 60 underlying assets, an industry record.
There are four types of underlying assets on which a binary option can be purchased: forex, indices, stocks and commodities.
Forex binary options/currency binary options: these are also known as currency pairs since they are made up of 2 currencies e.g. USD/EUR. Forex, or foreign exchange, reflects how much of one currency is needed to purchase a unit the other currency. The first currency (in this case the USD) is known as the base currency and the second one the quote currency. The stronger the base currency, the higher the number of the quote currency (i.e. it will take more Euros to buy one USD). This is vital for international trade and investment. It allows two countries who normally trade in their own currencies, to trade between themselves.
Stock binary options: stock shows what a company is worth and it is represented in shares. The beauty of stock binary options is that an investor is not obliged to buy the shares themselves in order to benefit from the activity of a company. Hence stock binary option trading allows an investor to trade, with fewer funds, on a company’s performance. anyoption™ has a wide variety of stock assets available covering the USA and Europe.
Index binary options: a group of several stocks is known as an index. It enables an investor to gain exposure to a wider section of the market in one single trade. Since it is the performance of several companies which affects the index, trading index binary options is generally a more reliable investment, however they are interesting since external factors can influence their movement. On the anyoption™ platform an investor has a wide choice of indices from the USA, Europe, Americas, Asia and the Middle East.
Commodity binary options: a good which falls under the word commodity is that which is easily interchangeable with goods from another producer. On the anyoption™ platform this includes oil, gold, silver and copper.