Asset Index

The Brokers platforms offers you more than 70 traded financial assets to invest in up to over 200 assets.

1) Commodities

Definition

Commodities refer to resources and agricultural products which can be traded with other goods. Commodities are divided into two sub categories: soft commodities- which include coffee, corn, sugar, etc. and hard commodities, which are extracted through mining and consist of gold, silver and oil.

Driving Forces

Commodities fall under the law of supply and demand; any changes concerning their value are a direct reflection of their quantitative state. As their price is set according to quantity (gold per ounce, oil by barrel, etc.), the state of the Dollar also affects their value; for every change the Dollar assumes, it links directly to the commodities worth.

2) Indices

Definition

An index, in general, measures the value of a section of the stock market, and subsequently denotes that country economical state.

Driving Forces

•1. The companies’ calendric announcements and the country’s current events (storms, wars, strikes, etc.) are the most noticeable influencers affecting the price of indices.
•2. Indices and stocks trading potential influence one another and therefore significantly correlate.
•3. The release of economical and fundamental reports has a direct impact on the rates of a country’s indices.

Psychological Indicators

The correlation between indices and stocks significantly affect the public’s confidence and as a result influence the indices and stocks trading potential. That is, indices express the state of companies in a specific country, and therefore illustrate the broad picture of countriesgeneral economic state.

For instance, the S&P 500 index illustrates the average weight (liquidity) of the largest 500 companies in the US. If any of these 500 companies embraces a sudden rise of their stock, the impact of it will directly affect the state of the S&P 500 index, and consequently hint at the general state of the US economy.
These series of events (a major stock plus the S&P 500’s inclination) won’t be missed by the eyes of investors, thereby shaping the public’s opinion and forming a positive view on the state of the US economy.

3) Stocks

Definition

Stocks represent the ownership of assets and earnings in a corporation.

Driving Forces

The price of stocks is governed by 3 factors:
•1. Company’s overall performance. For instance: sales, profit report, CEO activities, etc.
•2. Publics’ opinion. Traders are mostly driven by fear or confidence; as confidence in the company arises, the better the publics’ opinion is and the higher the stock’s value is.
•3. Competition. The advance of competitive companies bites off the success of your preferred stock. For example, Samsung stock’s rise has taken away from the success Apple’s stock had relished from.

Optimized Trading Circumstances

•1. Because the stock’s liquidity (marketability) is partly defined by the sum of investors trading it, when searching for a stock to invest in, verify that it has a high trading average and its properly liquidized.
2.• Invest in stocks according to their operative trading activity. As stocks trading hours depend on their company’s country of origin, stocks are only tradable during their local stock exchange hours activity, e.g. Volkswagen’s stock can only be traded during the opening hours of the German stock exchange.
•3. High volume stocks are the most profitable to invest in. Instead of investing in a stock for it’s worth, identify a stock which many traders invest in. Increased volume implies a better interpretation of the stock’s future movement.

4) Currencies

Definition

A Currency Pair expresses the value of one currency unit against another currency unit. The first currency of the pair is named ‘based currency’, and the second currency is named ‘quote currency’. The currency pair ratio isn’t necessarily directly influenced by one another, but it varies according to market changes.

Driving Forces

Currencies are best comprehended by comparing them to boxing. Like currencies, in boxing, you also have two units (fighters) whose attributes can lead to 2 outcomes:

•1. Two equally good fighters will put on a long fight without a definite result. And therefore, a 2 equally valued currency pair will denote a graph with indecisive overlapping movements as an expression of investors’ lack of confidence in any specific direction.
•2. If one of the boxers is stronger than the other, then the result of the fight is apparent. Similarly, if one of the currency pair value is distinctly higher, the graph will depict an obvious direction.

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