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.
Getting high yields from easy options trading using traditional securities is not normally acheived by average investors. Not many people know about a new ultra short duration investment which offers extremely high yields.People thinking short selling option premiums or using high leverage to amplify returns is a simple way to make money day trading get burned badly when things go wrong.
Enter a Simple Solution: The Binary Option
One easy options trading method is to use a security called a binary trade. Although this type of contract is traded only on a very limited number of securities it offers several advantages over traditional trades, including lower capital requirements, shorter holding period, and a high fixed yield. In today’s market, it would seem that this type of easy options trading is ideal given the market’s present low yields, high volatility, and tight capital availability.
Extremely High Yields Attract Investors
The holding period rate of return on a binary option contract is typically around 70%, depending on the broker and security. Yield goes up dramatically for longer duration contracts where a spread is involved. Amazingly retail brokers don’t typically operate a spread on the daily or hourly expiration securities, allowing for zero transaction costs. With low cost and high return possibilities even minimal cap investors can find a way to make money fast and easy using them.
Zero Transaction Cost and Low Capital Requirements Open Markets for Retail Investors
No spread or commission on a typical investment means the money required to earn a decent return on investment is not heavily encumbered by fees the way a standard trade would be. Most retail brokerages offer these easy options trading contracts in lots as small as thirty dollars and a minimum initial deposit of just one hundred dollars. Try making money with online stock or option investment with just a hundred bucks at a normal account. The hurdle transaction costs are just too high.
Short Holding Period Brings Fast Results
One of the other attractive features of the binary contract is the duration of the trade, which usually is as little as an hour to as long as a day or a week. An aggressive person can turn over their capital four to five times in a given day with the opportunity to be making money with each successive capital turn. The fixed short holding period relieves the investor of the burden of deciding when to sell – as these european style option expirations are designed to be held to maturity – a low maintenance way of putting your money to work for a short amount of time.