Stocks have long been considered a popular type of assets in the world financial markets. In particular, the financial market in which transactions are concluded for the purchase and sale of shares is called – stock. In the stock market, except for shares traded a lot more types of securities, such as bonds, notes, certificates.
However, to trade binary options, traders are provided the most popular type of securities – stocks. Trade stocks, was started in the 19th century and does not stop until today. Of course, this kind of financial assets has been included in the broker companies trading terminals of their customers. The popularity of this asset due to the following factors:
- lower volatility and a greater likelihood of movement predictability, compared to other exchange products;
- less sensitivity to yield economic news;
- more liquidity in comparison with some other types of financial assets.
On the screen you see Hewlett Packard’s shares, with a clear trend line and predictable movements. In connection with all the above factors, professional traders and investors, the stock has long been used as one of the key elements of the investment portfolios. Using the shares to trade binary options, in turn, allows traders to make a variety of its own trade and increase the profitability of many trading strategies. Currently, stock options – a popular stock market a product that is used by traders from around the world. This financial instrument, taking into account the most predictable traffic, is best suited to trading the most profitable types of options to obtain a profit which is expected after the strike price levels and at times reaches up to 600%.
We single out the following characteristics of stock options:
Strike price – the level used by the investor or stock broker as a price target, which should reach the value of the shares for a certain period of time. The more accurate forecast of the level – the more extracted from the trading profit. Type of option – PUT / CALL. Options PUT, give the trader the right to make its sale of shares if the latter considers that the value of an asset will decline, and CALL – the right to buy. Selection of the option, with, in each case depends on the situation in the market. If, according to technical analysis, we observe, for example, overbought stock AXIS BANK, the trading decisions on their sale PUT.
If the value of, for example, BANCO SANTANDER is oversold, then make a decision about buying CALL.
Expiry date – a predefined time, after which, the result will be fixed trading, and the trader will profit or loss.
Pricing of stock price
The price of shares is influenced by many factors. Here are the main ones:
- financial results of the company that issued these shares;
- deterioration or improvement of financial and ekonomichekogo background in a country or in a particular sector of the economy;
- news background.
However, as mentioned above, shares of companies less vulnerable to macroeconomic pressures, and the movement of quotations explicitly allows them to predict the future direction of the movement. However, there are fundamental events that have to share the most detrimental effects. In the screenshot below, you can see what effect the news outlet on the application of the United States, in respect of certain revenue enterprises, financial sanctions.
Trading tactics to trade binary options on stocks
As a rule, the financial asset used by major market participants in the following kinds of trade:
Trading binary options involves a high level of financial risk.
If you are a beginner – or use
demo account.1. Risk diversification portfolio of financial assets, which include shares of companies from different countries and industries. 2. Purchase and sale of shares, based on the fundamental news the following plan:
- development or decline in the sector to which the company issued shares, such as the crisis in the US automobile market led to the bankruptcy of GM;
- obtain information on financial hoyaystvennoy of the company issued shares.
Traders engaged in commerce through a Web terminal, trade binary options on stocks, on the basis of the information obtained as a result of the release of economic news that directly relate to the activities of the enterprise, as well as whole sectors of the economy, to which the latter applies. In addition, in recent years, trading of the shares is carried out through universal and trading strategies, which are used for trading on other financial assets:
- Indicating trading strategies that are based on the performance of technical indicators, supplied the trading terminal;
- mathematical trading strategies, which are based on the size of the trading lot of animation, as well as on the use of certain mathematical algorithms;
- simple trade using price patterns by type – Price Action.