Binary Options vs Forex

imagesThe number of binary options traders increase day by day. With every passing day, more and more traders, whether unpractised or experienced, begin to trade binary options paying less and less attention to the Forex markets. Why have binary options become so popular today and, in addition, why do many traders consider binary options trading more profitable than Forex markets trading?

It is very simple! Trade binary options is undoubtedly much easier than trade Forex markets, even if we consider currency trading. Having said that, another great advantage of binary options is the high returns offered, ranging from 70% to over 85%!

The ease of binary options is that you will do not need to read millions of books about trading, learn thousands of new terms, make continuous calculations, which also require you to take into account margins, expected maximum drawdowns, deposit reloads and percentages of risk. Trading binary options you will do not be worried about putting a stop-loss, constantly monitoring your transaction in the event you might need to close it immediately in order to avoid undesired losses, counting time intervals, using indicators and advisers to develop your own strategy, and much, much more.

With binary options, you simply have to spend half an hour to learn basic concepts of technical analysis such as trend, levels, support and resistance lines: as a result, you will quickly be able to understand and correctly predict future price movements. At that point, all you have to do is choose between «call» or «put».

In this way, you do not need to sit and monitor your transactions round-the-clock, you just have to press a button forgetting about it until the option expiration time (the last time on which the holder of the option may exercise it according to its terms). No matter if prices constantly rise and fall, your returns do not depend on each pip. In fact, while this is true for Forex profits, with binary options, your profit is strictly fixed, and no matter if the price rises up 70 pips or just one pip (in the event you bought a “Call”/“Up” option): you can still get your 70% pay-out. Undoubtedly, this is an enormous advantage of binary options trading and one of the main reasons why many traders quit the Forex market for binary options. Furthermore, if your chances of success with Forex trading depend only on the accuracy of your analyses on the pair you trade, with binary options you immediately have a fifty-fifty chance of success.

In addition, there are no limitations, nor restrictions on binary options trading, unlike what many brokers impose on some Forex trading strategies such as the scalping system or the “locking” technique (when you trade two lots at the opposite directions at the same time).

Finally yet importantly, when you trade in the Forex markets, you can only trade currency pairs while binary options offer a huge selection of financial instruments. Binary options trading gives you the chance to trade currency pairs, stocks, indexes, commodities or even exotic goods.