Forex Binary Options
He Forex market, an acronym for foreign Exchangeo themselves known as FX intends time as one of the most profitable and largest in the world markets, thus the amount of money spent, both for daily operations.
When we invest in exchange transactions, to speculate on the value of a currency, or increases or decreases relative to the other in an effort to achieve due to the gain. ?
For example, if the current price of EUR / USD is 1 308 euros and the second are the best of our knowledge, we know that the price will increase, we will buy 1 lot of EUR / USD and, therefore, we hope that price increases to the point where we want to go and then close the trade for a profit.
In this market, you can go in exchange currencies, or
$;
books;
EUR;
etc.
Remember, however, that most transactions are 2 pairs:
EUR / USD;
GBP / USD.
In addition, the Forex market a closed market, is not an open market for all operators; so that they can participate:
investors;
international investors;
central banks;
private banks;
governments;
small investors.
Trading Platform
Trading binary options online, as opposed to negotiating with the forex market, may rather be regarded as a form of much younger trade, with a sales volume is much less than what is Forex trading. Its purpose is to be able to predict the market direction in a short period of time, or whether it should be higher or lower than the asking price.
Binary, is a type of trading is very simple to use, and still ruled all recently.
In fact, the first binary options brokers born about 2008 2013 and only that he had, with the birth of the first company licensed to binary options brokers license or a license issued by the supervisory bodies and monitoring of how Europeans more accurate CySEC and CONSOB.
Unlike binary Forex trading it is very simple because you just need to predict whether the price of a good increases or decreases in relation to what the current price for a given period.
For example, suppose that the current price of EUR / USD is 1 308 euros, and always based on what our strategies you think the price will be higher in the next hour, go buy a "buy EUR / USD and wait to see what will happen to them at the same time. " If the estimate is accurate, you can also get to reach a gain of all '80%.
When we invest in exchange transactions, to speculate on the value of a currency, or increases or decreases relative to the other in an effort to achieve due to the gain. ?
For example, if the current price of EUR / USD is 1 308 euros and the second are the best of our knowledge, we know that the price will increase, we will buy 1 lot of EUR / USD and, therefore, we hope that price increases to the point where we want to go and then close the trade for a profit.
In this market, you can go in exchange currencies, or
$;
books;
EUR;
etc.
Remember, however, that most transactions are 2 pairs:
EUR / USD;
GBP / USD.
In addition, the Forex market a closed market, is not an open market for all operators; so that they can participate:
investors;
international investors;
central banks;
private banks;
governments;
small investors.
Trading Platform
Trading binary options online, as opposed to negotiating with the forex market, may rather be regarded as a form of much younger trade, with a sales volume is much less than what is Forex trading. Its purpose is to be able to predict the market direction in a short period of time, or whether it should be higher or lower than the asking price.
Binary, is a type of trading is very simple to use, and still ruled all recently.
In fact, the first binary options brokers born about 2008 2013 and only that he had, with the birth of the first company licensed to binary options brokers license or a license issued by the supervisory bodies and monitoring of how Europeans more accurate CySEC and CONSOB.
Unlike binary Forex trading it is very simple because you just need to predict whether the price of a good increases or decreases in relation to what the current price for a given period.
For example, suppose that the current price of EUR / USD is 1 308 euros, and always based on what our strategies you think the price will be higher in the next hour, go buy a "buy EUR / USD and wait to see what will happen to them at the same time. " If the estimate is accurate, you can also get to reach a gain of all '80%.
Difference between binary options and Forex
First go to examine the differences between Forex trading and binary options trading check out what could be considered quite similarities.
However, although it may seem very obvious and easy to make a comparison between the platform and Forex trading is not a simple matter, due to the very different characteristics.
Similarities
Both the foreign exchange market is the market for binary options are open markets; Here we refer to the ability to trade throughout the day, 24 24 hrs all week.
The pilots of the two markets, offering online trading with a small amount of capital, which will offer the opportunity to go to open a demo account or an account with a minimum capital investment of about $ 100.
Both markets offer the possibility of risking their money according to how the assets move.
In both markets, it is possible to negotiate in the short term, although there are exceptions.
Differences
Difference between Binary Options and Forex
Before going to highlight the differences, we would like to remind Trading Forex trading and binary involve high risks.
However, if you look more closely, we see that binary options are a little less risky because you know how much gain or lose before doing business.
It is a great advantage compared to transactions, because this way you will have more control over your money.
We now come to light that are rather the differences and Forex binary options.
In this regard, recalls:
Binary options, we need to know in advance what the benefits and risks even before starting to change.
The Forex market is much more variable than the binary options market.
Binary options trading is much easier in Forex trading, then:
know beforehand what are the risks and benefits;
When the option expires;
When he loses or wins a predetermined amount.
Spot Forex trading it known how the risk to the end of trade.
In Forex trading online, you can customize what is the potential reward against risk.
Binary options trading is always the biggest risk is the reward or is between 60-80% A% yield, but if you lose, you risk the whole capital.
With the binary option, for a gain of concrete they must meet a higher proportion of profits to 50%.
ForexUsted the market, you can lose more than you win.
Another difference between Forex trading and trading platform is the time available for trade.
The Forex market is a market of 24 hours. Thus, you can use all these sudden changes occurring in the world.
Another difference is that the performance of these two types of investment, since the two lucrative markets only if the dealer gives of his time and training investment. If we assume that we will invest $ 100, we can go and win 400.
Another factor is the time required to generate profits because it has a very short period of time to generate money.
In fact, we see that the typical length of a binary contract is between a few minutes and a couple of hours.
Thus, in a few minutes or a few hours, you can generate significant income while anticipate the movements of certain activities.
However, stressed the essential difference between the two markets, it refers to the difficulty of execution. Their task is limited to the correct prediction of the movement of a particular activity. There are only two outcomes: greater value; the value decreases.
Operations for binary options, has the advantage of being much more liquid than any other market.
What we wanted to include here, is just a cheat sheet of what the differences but also similarities between Forex and binary options, I hope it can be useful for those who are investment options for the future.
The two markets will bring advantages and disadvantages, but the foregoing, we go to assess what are the differences and then go to drive and try a demo account with a Forex broker or even a binary options brokers, as we go and make the right decision.
Invest and gain experience with a demo account is very important, especially if you are a beginner, as if Victory or defeat without risk of their real capital but only vistruale; It also allows you to practice what is their business strategies.
Finally we can say that binary options quickly gained popularity among operators, because they do not require any major investment and well managed, can be seen as a way to generate a lot of revenue. But do not overdo it, because it is always a high risk factor.
On the other hand, traders who want to invest in Forex trading is investing large sums of money, especially if we want to work with the lever provided by our broker.
Do not forget that the lever is a great way to multiply your winnings, but at the same time is also the best way to lose your entire investment.
Conclusions
Some vendors claim that binary options and Forex investments, you risk much more than you could if traditional investments.
But we also want investment or trading platform Forex, always know in advance how much you can win and you can also lose. This is always shown in advance to win a contract.
What we want to recommend in all cases, if we have, what are the differences and binary options Forex Trading are is to keep the spirit of his favorite trading style, you're attractive, but above all the capital they can afford to lose because what risk we are willing to assume.
There is good potential profit Forex if you develop a good trading system and of course to stay within certain limits of negotiation.
Therefore, every time we will invest a sum of money X, we know beforehand that in the case of a wrong prediction has lost the total amount of money invested.
If so, let's see what the trends are negotiating, we can see that profits and losses depend on how increases or decreases the value of an asset.
Therefore, for a trader to be surprises. All of course depends on the training of traders that minimizes the loss by using different strategies.