What are Binary Indexes for?
A lot of traders who trade on a stock exchange started choosing binary indexes trading. Let’s find out why. The main goal of indexes is to determine the price for different market sections. Every index is capable of holding prices of more than hundreds of companies. Therefore, one can conclude that indexes- are like holdings of shares or goods of the same type.
Indexes and investments give an opportunity to invest in one instrument which already has a holding of shares or how it is also called share portfolio. That’s the reason why the majority of investors prefer to invest their funds in binary indexes rather than separate shares or goods. Despite the fact that each separate index includes a lot of assets, they are considered to be pretty fluctuating and liquid which is important for all effective trading strategies such as, for example, gap trading strategy, intraday strategy trading etc.
If you have found out that Dow Jones index will increase until the end of the day and you agree with this statement as you see that the price is really growing and growing, then you can buy a binary index Dow Jones with a condition of price increasing, having clicked the button CALL-up. After that, your task is to select an expiration time, for instance, until the end of the day. If until the end of the day, a chosen index increases for at least 0,001 point- you will win 70% profit.
By the way, one of the best brokers for this kind of trading is AnyOption as it offers a wide range of indexes from all world stocks. You can also try to buy binary indexes not only for a day but 5, 15, 30 minutes, 1 hour daily, weekly and monthly.
Popular Binary Indexes
S&P 500- one of the largest indexes of American companies in the main industries. This index covers more than 50% of all shares in the US which include such giants as Apple, JP Morgan and Co and many others.
Another popular index is DAX – Deutscher Aktien Index – covers shares of 30 the most fluctuating German companies.
FTSE – Financial Times Stock Exchange – covers one hundred of the largest companies in Britain.
The list of indexes is really huge and can last for dozens of pages yet these are the most popular, well-known and used ones.
To improve binary indexes trading, you are absolutely free to use variable binary options strategies such as intraday strategy trading etc, as well as use calculations and predictions; basically anything that will help you in a trading process.