Binary options trading on global stocks has slowly begun expanding. A number of prominent Chinese stock listings have recently appeared on binary options trading screens creating new opportunities for wealth building. We’ll take a look at several of the companies listed here as well as other securities typically available at most brokerages.
Binary Options Trading of Chinese Stocks
The recent addition of Chinese stock option contracts on several of the largest technology and energy companies on the Mainland has about doubled the number of Far Eastern securities offered to retail traders. Familiar technology names like Baidu (Google’s rival in China), Sina (akin to Yahoo! in the US), and NetEase (an online gaming company) coupled with energy exploration giant PetroChina and financial insurer ChinaLife trade alongside their US counterparts on binary options trading exchanges.
Forex Option Contracts Limited Mostly to Liquid Cross Rates
Although there are some exotic USD base currency cross pairs traded as binary option contracts, most retail brokers only offer a handful of the most commonly traded/most liquid cross pairs. Think along the lines of GBPUSD, USDCAD, EURUSD, USDJPY as examples of the typical offerings. At least one broker is known to offer some more exotic pairs such as USDMXN, but as a rule exotic / relatively illiquid securities are not good candidates for binary contracts.
Domestic and Foreign Equities Limited But Expanding
As we noted above the number of Far East securities available as binary options trading contracts has expanded. Similarly the number of contracts available for domestic and “household name” foreign securities has grown as well. A trader might expect to find Volkswagen and BMW listed alongside Google, Yahoo, Microsoft, and General Electric in the US. Although some traders might prefer to try their luck with more obscure names in less liquid standard option markets, binary options trading simply isn’t done on these basically illiquid / thinly traded securities.