An equity stock is a share of the capital of a listed company that is traded on major stock exchanges. As you may already know, equity stock prices are impacted by a large number of different factors. When trading equity stocks using binary options, traders will basically be looking at factors that can trigger a sharp rise or drop in the price of a stock. It involves the implementation of short-term trading strategies using the leverage of binary options in order to benefit from small moves in the underlying share price.
The earning season alone can be a very profitable period for trading equity binary options once you understood how to use the information provided by financial medias and earning reports.
AnyOption is the binary options broker that has the most equtiy stocks available for trading. The fundamental factors include the financial results of the company, the dividend announcements, corporate actions impacting the shares, financial ratios… The technical factors have to be decrypted using charts, these technical indicators will help you identify entry points and take-profit levels (also know as technical supports and resistances) for your trading strategies. Trading equity stocks involves the buying and selling of shares of an exchange listed company in order to speculate on the appreciation or the depreciation in the price of the mentioned shares. You now understand the difference between equity stocks (or company shares), which form an asset class, and binary options that are financial instruments that enable you to speculate on any asset class (equity, forex, commodities, indices…).
This is the biggest advantage of binary options compared to equity stocks. The stocks offered for trading in the binary options market will differ from broker to broker. If you want to focus on equity binary options, you should select a binary options broker that offers the stocks you want to trade. Don’t hesitate to have a look at our detailed ranking of binary options brokers based on the number of underlying assets available to help you in this task.
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