There are many great things about trading with binary options. Perhaps one of the most satisfying is that when trading with binary stock options you get the opportunity to make money from the fortunes of some of the biggest companies in the world.
It is against this backdrop that I thought it would be fun to take a look at the biggest stocks that you can currently trade with binary options. These stocks are often referred to as ‘MEGACAPS’ as they represent the largest listed companies on the planet.
There are various criteria on which the size of global companies can be worked out. The most common way to work out the size of a publicly listed company is based upon its market capitalization. This calculation is made by multiplying the number of shares that are in issue by the value that is attributed to a single share. This provides a snapshot of the valuation of a company at any one point in time and can be used to compare ‘size’ across different markets.
As the calculation for market Capitalization is partly based upon the company’s share price, a rise and fall in this value will naturally dictate which companies head the leader board at any one time.
The following list is based upon the official market capitalization as at the end of 2012, for companies that are available to trade across the broadest range of binary options broker trading platforms recommended on this site. (PetroChina – Position 3 and ICBC – Position 6 cannot currently be traded and are therefore omitted).
Remember this is just for fun. Having more information about some of the biggest stock options in binary options won’t guarantee you profits. It will however provide you with a greater insight into the companies that you are trading!
So let’s kick off by taking a look at the biggest Stock Options you can currently trade!
It will perhaps come as no surprise that the Californian consumer Electronics company is the biggest company that you can trade via binary options. The desirability of both the brand and its products have helped propel Apple to the enviable position of ‘the world’s largest’ company by market capitalisation.
Think Apple, think IPod, IPad, IMac, IPhone, Itunes.. the list goes on. All core electronics that have been ‘beautified’ and sold to a generation.
The success of the company has rested on it’s ability to keep manufacturing costs low and maintain a significant price premium for its products. This has kept margins unusually high. However the loss of influential founder Steve Jobs, coupled with little in the way of new product innovation since his death has hit the stock’s price as investors ponder the companies next step.
2. Exxon Mobil
The largest oil and gas corporation in the world, Exxon Mobil is also one of the oldest oil companies in the world (previously known as Standard Oil). It is headquartered in Texas and was formed by the merger of both the Exxon and Mobil Oil companies in 1999. If you are thinking of using binary options to trade oil then this company is sure to be on your list.
While the company is delivering around 3-4% of the worlds total daily oil production from refineries in over twenty one different companies, it still remains small in comparison to many ‘state owned’ oil companies. In particular those members of OPEC (Organization of the Petroleum Exporting Countries) based in the Middle East dominate total production figures.
Noted for the immense wealth of its chief founder Bill Gates, Microsoft is the world’s largest software producer and one of the chief benefactors of the huge growth in technology over the past few years. It’s dominant Windows operating system is the most widely used software pin the world with thousands of business powered by both this and it’s office software.
Short term revenue growth in the stock is likely to rest on two things. The first is the ability to convince existing users to upgrade to its latest Windows 8 operating system. The second will be how the market perceives the latest incarnation of its new gaming console the XBox 720.
Although IBM is very much a modern hi-tech company, its origins can actually be traced back to 1911. Today the company offers computer hardware, software, infrastructure and consulting services to businesses around the globe.
The company is also heavily involved in the design and manufacture of processors. For example most modern game consoles including the Nintendo Wii, Sony’s Playstation and Microsoft’s XBox run on microprocessors designed and manufactured by IBM.
5. Royal Dutch Shell
The Anglo- Dutch oil company operates in over 90 countries around the globe and like Exxon Mobile is considered as one of the worlds ‘six oil majors.’ In addition to the exploration and refining, Shell is also active in the development of bio fuels, distribution and renewable energy sources.
As with all oil companies, pricing is dictated by core demand which will be determined by the economic outlook and also the ability to maintain steady supply. Associated productions costs , exploration success and also environmental factors will also cause price movements in the stock.
So there you have it. The worlds five biggest stocks that you can trade with Binary stock options. All you need now is to come up with a profitable strategy for trading them!