The Power of the Asian Binary Options Market



The biggest advantages of signing up with an options trading platform is its convenience. This allowes one to trade online through an easy-to-use system but also enjoy the convenience in accessing a wide range of markets, virtually 24 hours a day from anywhere in the world.

Many Asian companies have been at the forefront of innovation in a number of countries due to their rapidy growing economy. An example is the operational excellence in Japanese manufacturing plants, mass production efforts in China and growth in the customer service area in India. These Asian firms have dominated market performance in our modern times with their exponentila growth which gives arise to many trading opportunites.

Most of these companies trade on their local stock markets which including the Hong Kong Stock Exchange, Tokyo Stock Excahnge and the National Stock Exchange of India. All three exchanges have their own market indices which act as assets in their own right and provide a representation of overall market performance of the individual country.

The Tokyo Stock Exchange (TSE) includes multinational firms such as Toyota, Sony and Toshiba. The Nikkei 225 is the primary market index of the Tokio Stock Exchange.

The Hong Kong Stock Exchange lists domestic and global stocks such as China Mobile, PetroChina and HSBC, highlighting the cross section of stocks that Hong Kong contributes to the global economy. The primary market index of the Exchange is The Hang Seng.

Stocks in India such as Tata Steel Ltd, Punjab National Bank and Tata Motors Ltd are listed and trade on the National Stock Exchange of India and are components of its primary market index, the Nifty 50

The stocks and indices of these large corporations are of great importance to our global economy in that Asian markets guide a lot of other business performance worldwide. It is therefore cruicial to understand how prices of these major indices are affected and influenced by other elements occurring in the markets on a daily basis.

In Asia, the value of indices can easily be influenced by the overall global demand as a whole, as well as supply. An example is, if global demand reduces due to a decrease in consumer spending, production in certain areas of Asia such as China will be influenced. This event is also highly likely to influence the volume of products China purchases from other areas of the world such as Europe or North America. This will result in the value of indices in these regions to fall.

Economic conditions however may have the opposite effect in other instances. At the start of the economic downturn in 2008, many consumers didn’t necessarily tighten their belts but looked for less expensive alternatives. Asia, in many instances, was able to satisfy this need due to the lower cost of manufacturing in places like China and India. The movement towards manufacturing in these regions created a rise in the value of local indices due to greater demand and, subsequently, output from Asian organisations.

Gaining an understanding of the price movements of Asian stocks and indices can be a powerful tool for the binary options trader. By trading index binary options based on the value of the Nikkei 225, Hang Seng or Nifty 50, users can gain access to a market that operates outside of traditional market hours. Part of the attraction of Asian markets is that they are available during hours when the US stock exchanges are closed and before the European stocks open, expanding the opportunities for traders.

When we look at the global trading situation at the moment, many of the emerging economies are based in Asia. By trading options based on Asian binary stock options or index binary options users can take advantage of this growth as they execute their binary trading strategy.