Binary options underlying assets

There are 4 main categories of underlying assets you can trade binary options on. They are

  • Commodities
  • Currencies
  • Indices
  • Stocks

We will examine the pros, cons and differences of each asset class in accordance with the main variables that can determine which assets you choose to specialise in. These variables are

  • Asset trading hours.
  • What type of binary options are available for that asset.
  • Payout %.

Brokers offer different payout % on different assets based on how easy it is to predict the direction the asset will move in, this means more predictable assets attract a lower payout %.

The different payout %  is also determined by the amount of liquidity the broker takes on an asset, that is to say, how many traders are trading in it. Higher liquidity markets are better for the broker allowing them to offer higher payout %.

Commodities, indexes and stocks

Trading hours

These assets are available for trading from 9:30-16:30 in the time zone of the corresponding stock market or commodity market.

Payout %

These assets have stable up and down trends making the price movement easier to predict. This can be good for your win rate but when it is combined with the fact they have lower liquidity it means they attract a relatively low payout % of around 70% but this varies from broker to broker.

Type of binary options available

They are often not available for anything other than normal 5 minute – 30 minute high/low binary options but this varies from broker to broker.

Currencies

Trading hours

Currencies are available for trading 24 hours a day from Monday to Friday.

Payout %

They are not easy to predict and get very high liquidity giving currencies the highest payout % of any asset type. For the EUR/USD that means  around 80% but this varies from broker to broker.

Type of binary options available

Currency pairs are available for all binary option types be it standard 5 minute -30 minute or 60 second high/low options, one touch options and boundary options.

Best asset to specialize in

As you can see, unless you have a special reason you want to trade a particular commodity, index or stock then currency pairs are king of the hill when it comes to binary options trading. They are the most convenient and have the best value and variety of options available.

Having said that you may as well try trading all the asset classes to see which one suites your trading style better. For example if you find are more profitable trading commodities and enjoy it more then you should go with that.

Trade well my friends.

1 Comment

  1. Binary Brain Wave 8 months ago

    I’ve truly never used this strategy, thanks for conveying it.

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