For example, let's consider you are investing in binary options with spot
gold as your underlying asset and your investment is $ 100 for that particular trade.
Not exact matches
To begin with, you need to select an
underlying asset to trade in, such
as a currency pair,
gold or oil.
Underlying assets may include any currency, stocks, commodities such
as gold, indices, etc..
Think of them
as tracking an
underlying asset, such
as shares of stock, bonds, and even
gold bars.
There are many
underlying assets such
as debt, equity,
gold, and real estate, etc., in which money is invested through mutual funds.
While derivatives built on
underlying assets such
as cash,
gold and bonds are constructed to minimize loss in more high - risk endeavors, what the report calls «a generic paper contract» might not specify data sources or algorithms implemented by the counterparties.