One of the more common underlying assets binaries options dealers choose to invest in are stocks. A long list of stocks can be obtained for options trading, crossing from Nike to Barclays and British Petroleum. The list is growing as binary options sites add new stocks for their portfolio like Akbank Turk, Deutsche Bank and Volkswagen.
For those of you who are just starting out your binary options career, let us go over the definition of a stock. A stock or capital stock of a company represents the initial capital paid or invested into a business by its creators. It functions as a security net for the lenders of a company since it cannot be pulled away for their disadvantage. Now, it gets a little more complex because the stock of a company is broken up into shares.
According to the overall sum invested into the company, a share has a particular stated face value, often called the par value of a share. The par value is the minimal amount of money that the company may issue and sell shares.
On most binary options programs, Nike has an hourly options expiry amount which is equivalent to the amount of the LAST, worth, REQUEST worth and BID worth, split by 3. The result is rounded up or down to the decimal. Additionally accessible are binary options end of day, week and month expiry amounts, which are the values that appear in the Reuters Area at the expiry time.