Stock Trading

Stock trading in binary options happens every day—an untold number of equities are traded around the world. This movement causes the value of individual company shares to fluctuate. In an effort to allow traders to capitalize on these fluctuations, we offer binary options on a variety of stocks from worldwide stock exchanges.

Stock Trading in Binary Options

Stock trading happens every day as an untold number of equities are traded around the world. This is probably explained by the fact that they allow people to participate in the highs and lows of the companies they know and love most. Accordingly, the most common stocks offered as underlying assets for binary options are the shares of large, hi-tech companies like Google, and large multinational corporations like McDonald’s, Nike and Barclays.

By definition, a stock is a share of a given company. When the value of the company rises, it translates to the value of its shares rising. The idea behind offering stock trading in binary options for popular companies is that information and news are readily available on them to help traders make informed trades.

In binary options, if a trader places a Put option on a stock like Tesla and the option expires in 2 hours, this means that he or she believes Tesla shares will decrease in value by the end of the next 2 hours. The price only needs to move fractionally higher or lower than the Strike Price for a trade to be profitable.

Why Trade Stocks ?

Lucrative Opportunities

The stock market is quite volatile. This creates numerous opportunities for profitable trades as the prices of company shares go up and down.

Easy to Trade

Trading stocks is easy and straightforward. Traders are only concerned with short-term movements in stock prices and do not need to look for trending markets.

Low Investment Requirements

Depending on the tool used, stocks are available for trading with investment amounts as low as $25. The potential payouts are also fixed and are known ahead of time.

Widely Available Information

The ease with which stocks can be traded has a lot to do with widely available free information. Just watch out for important events and jump in to trade at the right time.

Factors That Influence Stocks

Quarterly Earnings Reports

Four times a year, publicly traded companies are required to report their performance so investors can gauge the financial health of the company and determine whether it deserves their investment. This creates trading opportunities because price volatility is high when firms announce quarterly earnings.

For example, if a company delivers quarterly results with better-than-expected earnings, stock prices usually jump. Conversely, if the report is disappointing, stocks tumble.

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Currency Fluctuations

Earlier this year, Switzerland’s central bank abandoned its policy of holding the value of the Swiss Franc down against the Euro and the currency moved by more than 15% in a day. This caused the stock prices of major Swiss companies including watchmaker Swatch and food multinational Nestle to slump.

This is because as the currency of a country rises, it makes the country’s products more expensive for foreign buyers. As a result, the stock market shows price drops across the board.

Impact Rating

New Products and Services

Product speculation and announcements create publicity and excitement regarding a company’s future earnings and cashflow. This generally has a positive effect on stock prices unless the product receives negative feedback and a low level of enthusiasm.

For example, Apple’s iPod Nano announced in September 2005 caused Apple’s stock price to climb 3.3 percent to close at $69.34. The announcement of Creative’s WebCam Live Motion around the same time did the opposite and stock price of the company dropped.

Impact Rating