Forex Vs Binary Options
Binary Options vs. Forex
If you have been learning about binary options trading, doubtless by now you have also started picking up some tips and tricks for trading Forex. The two are very closely related, mostly because you can trade currencies either way. Binary options is simply a different way to trade—and you can also trade other assets. Should you trade binary options or Forex? There is nobody who can make that decision for you. I will attempt to break down the differences between the two in this article so that you can make an informed decision.
How Binary Options Trading Works
First off, let’s get through the basics. With binary options trading, you are predicting the direction that the price of an asset will move (up or down). That is the most basic type of trade. For example, let’s say you are trading GBP/JPY. You believe the price of the currency will be higher after fifteen minutes than it is now, so you choose “up,” or “high,” or “call” (they all mean the same thing). The price goes up, and after one hour you are paid for your investment. There are also other trade types, including Range, 60 Seconds, and One Touch.
How Forex Trading Works
There is only one type of trade for FX. Let’s say you believe that GBP/JPY is going up. You buy a lot, wait, and see what happens. You can exit the trade whenever you want. Note that price must move for you to make a profit. With binary options range trading, you can actually profit with price sitting still.
Now you know the basics for each, let’s go on to the differences.