In essence, indices are comprised of a group of stocks. The most common global ones include the Dow Jones (USA), the NYSE (USA), the S&P 500 (USA), the FTSE (UK), the CAC 40 (France), the Nikkei 225 (Japan), and the NASDAQ 100 (USA).
There are over 100 indices worldwide, all of which are tradable on binary options platforms and are available for anyone to do so.
Trading these assets in binary options is similar to trading stocks and any other asset.
If you place a Call option when trading indices, you are thus predicting that at the expiry time, the market price will be higher than it was at the strike price. If your prediction is correct, then the trade is said to be In The Money – and you make profit on top of the initial investment amount .
If you place 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. With a correct prediction, the trade is once again deemed to be In The Money – and you’ll have made profit on top of the initial investment amount.