The format and conditions of work in the binary option market allow you to use any financial market instrument as an underlying asset . However, non-professional investors are constantly looking for the most profitable and effective trading tool for trading. We decided to analyze trading operations on various formats of financial assets and determine the best of them, which will provide the most optimal indicators of profitability of trading operations.
So, the main list of brokers of the options market offers the following types of underlying assets:
- Stock market assets;
- Foreign exchange market instruments;
- Commodity assets;
- Metals.
For each asset, there is a list of the most optimal trading conditions and trading systems that allow you to get maximum results.
Stock market assets
This list usually includes securities issued by large corporations of a global nature. For example, on the Binomo trading platform, securities of such companies are placed as underlying assets: Apple, Google, Nike, Alibaba, BMW, Tesla, Mercedes and more than 25 other items.
This type of underlying assets of binary trading is characterized by the following optimal conditions for use in trading:
- Opening hours of American trading platforms;
- Use of news trading systems and technical analysis systems in trading;
- Application of options with an expiration duration of 3 hours to a day;
- The level of risk limitation is up to 10%.
Stock market assets as a financial instrument for binary trading are quite profitable to use as a means of investing with the help of binary options. Thus, it is possible to get the maximum profit on well-predicted fluctuations in stock prices of companies.
Underlying assets of the currency market
This tool is a classic in binary trading. Currency pairs are used in trading by the vast majority of binary market traders. Such popularity is due to the high volatility of fluctuations in the assets of the foreign exchange market, a wide time range of availability, a large selection of instruments, as well as the presence of a wide range of trading systems that work optimally on currency pairs. For example, a simple forecasting mode based on the Alligator, RSI and MACD indicators allows you to get more than 85% of effective trading positions:
Optimal trading conditions on foreign exchange market assets:
- The entire period of operation of stock exchanges;
- Indicator trading strategies, graphical systems (the choice of strategy must be carried out taking into account the trading time);
- Options redemption range from 60 seconds to several hours;
- The most stringent restrictions of money management are up to 5%.
When using foreign exchange assets, it is recommended to conduct trading operations on professional platforms with the best technical equipment. As an example of such a terminal, we can recommend the Binomo broker developed by specialists. Here you can get a complete list of technical and trading instruments, as well as optimal trading conditions with minimal initial deposit and contract value.
Commodity assets
Basically, oil is considered to be a representative of this direction of basic assets. Today, the hydrocarbon market demonstrates high dynamics of price movements, which allows you to get a very high income with the help of binary options. The attractiveness of commodity assets is determined not only by their volatility, but also by the high level of predictability of price fluctuations.
Optimal conditions for the use of commodity assets:
- The time of the end of the European and the beginning of the American trading session (at this time the maximum number of information publications affecting this type of underlying assets is released);
- News trading strategies, systems based on candlestick patterns, classic Price Action systems;
- Use of contracts with an expiration of 1 to 5 hours;
- Risk limitation at the level of 3%.
The right choice of strategy and time of trading on commodity assets will allow the trader to get the highest results in the binary market.
Metals market
Despite the fact that price quotes of gold and other precious metals are not used very often in binary trading, this underlying asset is the most versatile for trading in the options market. A high degree of forecasting of this direction of the financial market, the use of gold as a safe haven asset and a fairly good volatility of price movements allow you to apply any trading strategies, trade at any time and apply the classic rules of money management. Assets of the metal market, with the correct use and application of high-precision indicator and graphical strategies, can be the most optimal choice for a trader.
Here you can apply simple chart strategies for trading with the trend:
As a result, we can say that in binary trading there is no universal asset for trading – all instruments are attractive and profitable to use in their own way. The main issue remains only the choice of the optimal trading time, an effective strategy and the immediate preferences of investors. Answering the question of what are the best assets for trading binary options, we answer – absolutely everything, the main thing is to trade at a professional level.
