Forex or Binary Options. Is There a Difference?
Those who have been familiar with trading in the financial market for a long time "Forex.", when the topic is mentioned in conversations binary optionsThe fact that they are not aware of this topic is rare, because they simply do not know about it. Without knowing why the Forex exchange will be so different from the binary options exchange - can you tell much about it? After all, the list of assets is the same, and trading strategies are also very, very similar. So what is the reason why the Forex players are leaving the familiar ground and move to binary-option terminals? Why this type of exchange activity became so popular in a short time?
The most important difference between the Forex exchange and binary-option platforms
Binary option can be called a tool, which performs financial operations on the futures market. The scheme is similar to that used by traders in the Forex market, namely - the meaning of trading is to make correct forecasts about where the price will move in the future. But there is a difference between binary trading and Forex trading, and it is very significant! Mainly it consists of the fact that in order to make profit on Forex you must make the quotes left in the direction of your forecast for a significant number of points. And here at binary-option trading - everything is different - you will not matter the aforementioned amount! One point passed by the price in the direction of your forecast will be enough for you to receive a full-size income! Yes, yes, this is no joke! One correct pip - and your profit is in your pocket! Just point out whether quotations will go down or up. And no counting of points and unnecessary fuss!
The order of profitability of exchange players on the binary market
And one more important difference between the binary exchange from the Forex market - in favor of the binary option is its high profitability, reaching + 90% from the initial lot for each trading position! And on Forex - is it possible to achieve a similar result? - How?! The probability of it - tends to zero! The price for that must be passed on Forex, just an unreal distance to the direction predicted by you! But binary - playfully "present" to exchange players 90% of net income - for one point, which the price passes in your specified direction!
How much can I "raise" overall as a binary options trader? An experienced trader in this market can easily earn weekly 50%! And what about the Forex market? Only 150% in a trading year - say the average figures of "successful" clients of this trading resource! Without making a large investment at the outset - and it only makes sense to invest a truly huge amount - you will be incredibly long "crawling" to the dream of financial success, and not the fact that you will achieve it at all! And if you assess the risks...?!
And it's easy to make a decision - get in your pocket every week 50% and quickly build up with a small investment your financial deposit - or dream of a dubious 150% for a year?
So, we can already summarize - for what reason did Forex have a competitor - Binary option? - It happened because this exchange product has remarkable characteristics:
2. The option itself has a profitability of up to 90% from each lot.
Technical simplicity of financial manipulations and income from the beginning of trading.
4. You do not need to invest a large amount at once - you can enter the market even with $10 on the deposit - but in the shortest time you can make up this deposit (because the option itself has a high rate of return).
5. The known in advance amounts of loss and income, the simplicity of capital management.
6. Simple interface of trading terminals at their high technical equipment.
7. Short training time - due to the technical ease of the trading process.
Disadvantages of the binary option market
Binary options also have a disadvantage. These are:
2. In binary trading there is no possibility to automate the process, and you will have to trade manually. However, there are no complications, so it can hardly be called a disadvantage.
What binaries are called the best?
A point and a half was enough for us to name the disadvantages existing in the binary-option activity. For today this type of trading is the most technically perfect and economically profitable.
Company INTRADE.BARwhich specializes in the provision of services for trading binary options, has a bar to enter the market at 10$, the minimum transaction as set by this broker at a rate of 1$. At first you can, by the way, and not replenish the deposit - Intrade Bar to each client gives "free trades" - You can trade free trades at the company's expense, which allows you to test new strategies, the Intrade Bar platform, and even yourself. Earnings from these trades you can "put" in the further work, or withdraw from the account and cash out. These transactions are not a bonus.
Due to the fact that the profitability of trading with INTRADE.BAR can reach a value of 90% - you can quickly build up your deposit, and even if at the beginning of your career - it was minimal!
There is a difference and a very big one. It especially concerns the speed of earning money. On binary options in one day you can earn more than a trader will earn in a month.
I think that if there was no Forex, there would be no binary options. And what is better or worse is at the discretion of each trader.
Options are not easier, some people understand just trading options, and some people don’t. You can try both, there are also non-deposit accounts that can help you learn a lot. I tried forex, not my thing.
I appreciate those brokers who allow you to earn with a minimum of risks. When I speak about low risks I mean about 10 minimum deposit and 1 dollar minimum deal. I would not be sorry to lose $1.
There is a difference, but it’s not that significant. The main thing is to understand the market, to understand the principle of trading and then everything can be overcome. Many people choose options over forex, because it is easier in some way.
For those who are good traders there is no difference)) I mean, it’s easier to trade one if you’re already familiar with the other in terms of trading.
It’s much easier to understand under these conditions, but the main thing is not to mix things up))
There are still differences. I know one person who trades very well on options and has no success on forex. So what can I say, there is a difference, just not everybody notices it.
Whether you see it or not is your decision.
For some reason I chose options, although at one time I started with Forex. I can not say that it was easier for me to start with Forex, it just happened, but for some reason I like options. I preferred options because they say it is easier, maybe not much easier, but I like it.
Bought an option sold an option, in a way it's really simple if you don't complicate it. There are very, very simple and understandable strategies for options, everyone can do it without additional training, the main thing is to make the logic work.
Options attract everyone by their simplicity, but in fact it's not so simple. You should not think that you can become rich overnight. You have to choose the right broker and strategy, and you have to learn how to trade.
What works for whom. Even trading the same thing, some find some strategies more attractive, others quite different strategies. We are all different and our thinking is different. No one has the same opinion or view.