Binary traders don’t really purchase any underlying assets. Rather, they hedge the investment and determine whether the price will increase or decrease within a set period. These traders deal mostly with stocks, especially individual stocks that might be more profitable considering the choice and opportunity. Various types of shares can be used as underlying assets during binary trading.
Profit Through Stocks
The stock market is very market in many economies throughout the world, which provides greater opportunities for profits. Binary traders experience a wide range of profits compared to conventional stock traders who might take a while to get profit from their initial investments. Using stocks as underlying assets during binary trading is quite beneficial since you can get as much profit as 85% within the shortest time possible.
It’s easier for binary traders to predict the increase or decrease of the price of stocks within a period of time. On the other hand, stock traders can’t predict the exact price, just the up or down movement within a set period.
The Most Popular Stocks For The Binary Market
Any binary trader can use his/her platform to find the best stocks to trade. It’s prudent to review information on the best stocks, especially those that are popular with enough predictability. Keep in mind that binary trading doesn’t primarily deal with stock trading. However, it allows the trader to predict the increase or decrease of the initial price.
Some of the most popular stocks that can be included in binary trading include the following:
• Apple Inc – Perhaps, one of the most popular stocks in the globe, these stocks are highly predictable. The holdings continue to increase with the release of iPads (multi-functional tablets), iPhones (communication devices) and iPods (portable video and music players). With every announcement of new products or enhancements on the original products, the stock prices increase accordingly.
• Google Inc – Renowned for Android Platforms as well as search engine capabilities, the company news is always published in trade journals thereby the predictability is quite stable.
• Vodafone – One of the largest telecommunication company in the world for mobile networks, the company has branches in at least 30 countries. By reading the trade journals, you can easily predict the increase or decrease of the company’s stocks.
• British Petroleum – There have been numerous environmental strikes against the company but the prices are still great. A binary trader can try using the company’s stocks in the market using the right predictions and win a considerable percentage.
• Other companies include Microsoft, Citigroup, Lukoil and Nike.
By looking at the industrial average from Dow Jones as well as the NASDAQ reports, you can always make exceptional returns on your investment. These work perfectly for those who are nervous with binary trading especially in stock indices instead of individual stocks. With the right information, the return on investment should be considerably good.