Binary Options vs Forex
Online Binary Options Trading has clearly become one of the most popular forms of financial activity over the last decade. Even though it involves certain risks, the benefits of binary trading, such as high payouts, predetermined amount of loss and profit, ease of use and variety of trading features, make them very attractive for beginner traders and experienced market players.
- Trading has never been easier. Trade on the go! No spread, no hidden fees, no commissions!
- Up to 90% Instant Payouts. Controlled risks – you will never lose more than you invest in one trade plus there are always ways to minimize the risks.
- Short term trading – a huge advantage for those traders who make their predictions on news releases or major eco nomic events
- Secure Web-based Trading Platforms. No download required! Mobile applications are available for Apple and Android.
- Professional Trading Education is offered by the majority of binary options brokers, including webinars, tutorial videos and reading materials.
- Up to 100% Bonuses. Regulated brokers provide bonuses with no withdrawal restrictions. You can be sure that if you choose to cancel you trading bonus and withdraw your funds, you can do it at any time.
With Forex trading you never know what is the maximum profit you can make on a trade.
On the other hand, when trading binary options, you know the exact payout you will receive if your option expires in the money, and the exact loss you will suffer if your options expires out of the money. Depending on the type of the option you are trading your payout can be between 65 and 1000% of the invested amount. Plus, modern platforms have a number of trading instruments allowing to either close position early, or roll over expiry time, or even double the position.
When trading Binary options you only have to predict if the price of an asset will increase or decrease by the time of the option expiry (by the end of the life term of an option). For example, the current price of EUR/USD currency pair is 1.24873 and you believe that the price will be higher in the next 15 minutes. You open a “Call” position on EUR/USD and wait till it expires. If your prediction is right, you will make a profit. In binary options trading, there are no hidden transaction costs or spreads.
Binary Options orders can be executed with the use of different trading tools. Binary Options types include: Call/Put also called High/Low or Up/Down, 60 Seconds Options, One Touch Options, Pairs, Ladder and Long term options. Some types of options have predetermined expiry times, others allow to set expiry times within certain range, for example 60 seconds, 180 seconds, 5 minutes, etc.
The minimum and maximum trading sizes are determined by binary brokers. The minimum trading amount can be as low as $1 per trade, and the maximum can be up to $10 000 or more. That makes binary options trading accessible to the majority of traders, especially to the beginners.
One more great thing about binary options trading is that you have a wide choice of tradable assets. While currency pairs are the most popular assets, some traders make their choices in favor of commodities, indices or stocks.