Trading Indices Using Binary Options

Looking for a low-risk method of investing in the main indices? With binary options, this is now possible! The best thing about it is that you can have a starting capital as low as $100!

Winning in this industry is pretty simple – you only have to guess which direction the price of an asset is bound to go, buy the appropriate options contract, wait for the contract to expire, and collect your profit! Depending on the binary options brokers, traders can receive as much as 81% for all contracts which end “in the money”. Because earnings do not depend on the size of price change, even a .0001 change in the direction you predicted can lead to profit!

Many binary options traders believe that indices are the best instruments for this type of trading. Because indices consolidate prices from major stock exchanges, price changes are pretty stable, hence, predicting the direction they are bound to go is so much easier. Because binary options contracts for indices is now available electronically, a trader can now open and close contracts with just a few clicks of a button! The best part about binary options trading with the main indices is that they are charges with lower taxes compared to stocks! Using a good broker and an excellent binary options platform, a trader can take advantage of price monitoring systems as well as market analysis data in making their investment decisions! Four of the most commonly traded indices today include the Dow Jones Industrial Index, the NASDAQ Composite Index, the NASDAQ 100 Future and the S&P 500.

1.       The Dow Jones Industrial Index consolidates the prices of the 30 most traded stocks in the New York Stock Exchange. Binary options for the Dow Jones are traded every hour, from Monday to Friday, between 9am and 4pm EST. Other brokers offer multiple expiry time – daily, weekly and monthly.

2.       The NASDAQ Composite Index uses the price of stocks which are listed under the NASDAQ stock market. Unlike the Dow Jones, it includes stocks from smaller and newer companies. It lists more than 3,000 securities and is considered as one of the biggest indices today. Binary options contract for NASDAQ are traded from Monday to Friday, at 9am to 4pm. Expiry periods are available hourly, weekly and monthly.

3.       The NASDAQ 100 Future lists the top 100 companies whose main business in not related to finance. Of all the main indices, it is the only one that’s traded 24 hours a day, from Mondays to Fridays. Binary options are traded between 2pm and 4:15 pm EST.

4.       The S&P 500 utilizes the prices from the top 500 companies in the US. It is denoted by the symbol SPX and is often used as an indicator of the condition of the US economy. Binary options contract for this index are traded from Monday to Friday, between 9:40 PM and 4:15 AM EST.

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Posted by on Jan 16th, 2011 and filed under Binary Options Trading. You can follow any responses to this entry through the RSS 2.0. You can leave a response by filling following comment form or trackback to this entry from your site

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