Many binary options brokers offer metals either as an underlying asset for binary options, as CFDs for traditional CFD trading, or both. Metals, and in particular precious metals (gold, silver, platinum, and palladium) are popular among traders since they are seen as an alternative to traditional national fiat currencies and a hedge against these. Trading strategies that exploit these capital flows can be very profitable for both binary options traders and CFD traders.
Gold in particular tends to rise in price when the US dollar – the world’s reserve currency – declines in price. Silver, on its end, is often referred to as “gold on steroids.” This metal will thus usually move in the same overall direction as gold, but with even more force since the silver market is a lot less liquid than the very large gold market. Platinum and palladium, however, are largely considered industrial metals, and therefore tend to move in a different manner.