By Darrell Martin
As you browse online, you may have wondered on which markets you could trade binary options. Are binary options available for all markets? Can you call up your broker and request a binary option on your favorite stock?
Binary options are available for Stock Indices, Forex, Commodities, Economic Events and Bitcoin. Nadex offers over 2400 binary option contracts daily on some of the most popular financial markets. All are based on the underlying futures prices as shown below.
Stock Indices:
WALL STREET 30: Based on the CBOT E-mini Dow Futures, which tracks the performance of 30 major US companies.
US 500: Based on CME E-mini S&P 500 Index Futures, tracking 500 large cap common stocks on the NYSE and NASDAQ.
US TECH 100: Based on CME E-mini NASDAQ 100 Index futures that tracks 100 leading non-financial US companies.
US SMALLCAP 2000: Based on ICE Mini Russell 2000 Index Futures, tracking the performance of 2000 small-cap equities.
CHINA 50: Based on SGX FTSE Xinhua China A50 Index futures, tracking the 50 largest companies of the Shanghai and Shenzhen stock exchanges.
FTSE 100: Based on Liffe FTSE 100 Index futures, which tracks the largest companies in the UK by market capitalization.
GERMANY 30: Based on Eurex DAX Index Futures that tracks the 30 major German companies on the Frankfurt Stock Exchange.
JAPAN 225: Based on SGX Nikkei 225 Index Futures, tracking the activities and sentiment of the Japanese stock market.
Forex:
You can trade Binary Options based on the underlying spot price of the following pairs:
EUR/USD, GBP/USD, USD/JPY, EUR/JPY, AUD/USD, USD/CAD, GBP/JPY, USD/CHF, EUR/GBP, AUD/JPY.
All pairs take the value of the first currency listed in relation to the value of the second listed currency.
Commodities:
Metals, such as Gold, Silver and Copper can be traded with binary options. These markets settle with reference to the underlying COMEX/NYMEX Futures prices.
Energies trade on the movement of the underlying NYMEX Futures for Crude Oil and Natural Gas.
Corn and Soybeans are the Agricultural binary options available to trade on Nadex using the underlying CBOT Futures prices.
Economic Events:
There are three main announcements that you can take a position on with binary options. They are:
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Fed Funds Rate
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Jobless Claims
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Nonfarm Payrolls
Bitcoin:
Bitcoin is the popular crypto currency. When traded using Nadex binary options, you still have limited risk, short-term contracts in a transparent, regulated marketplace. Bitcoin is offered with Daily and Weekly contracts.
No broker is necessary when trading as a member on Nadex. It is easy to set up a demo and/or live account and begin trying out all the available markets.