Commodities are made up of a list of valued raw materials which are worth trading for any investors to make profit. The list includes gold, silver, oil, and coffee, copper, corn, palladium, and many others. The index value of these particular assets has been set in US Dollars, and is most commonly traded with this currency.
The list of tradable commodities in binary options is large and includes raw materials from various economic sectors, including the energy, metals, and the food industry.
When someone trades commodities in binary options, he/she is predicting that at the expiry time, the market price will be higher than it was at the strike price. If the trader’s prediction is correct, then the trade is said to be In The Money – and the trader makes profit on top of the initial investment amount .
If an investor places a Put option on a specific trade, he/she is predicting that at the expiry time, the market price will be lower than it was at the strike price. If the prediction is correct, then the trade is once again deemed to be In The Money – and profit is made on top of the initial investment amount.