Binary Options Trading Vs Forex

Binary Options Trading Vs Forex

Trading Forex (Foreign Exchange) is a currency trading activities of one country to another. Forex can be said as a money changer or the stock. The benefits of trading Forex is derived from the difference between the purchase price and the selling price should traders in general. Actually, the initial goal is for the payment of Forex overseas. But Forex can also be used for the exchange and selling currencies. With these currencies are traded in a market which is shaded by Forex, called as Forex market.

Binary options can be said online trading, binary options system easier than Forex. For novice traders prefer binary option because the system is fairly easy. System advantages of binary option is to utilize the condition of the rise and fall of the currency within a specified time before. Online trader will know when the value of the currency up or down. They will know in a few days or even a few minutes. The first step is determining the asset, then determine the market direction and enter the capital to be invested.

Further we will go into more detail differences Forex and binary option trading :

1. Method of trading (Binary Options Trading Vs Forex)
Differences in trading Forex and binary option the first is a method of trading. Forex trading size is 300 times the actual capital with a leverage system. Trader should consider leverage, spread, or margin. While trading binary options simply predict the direction the market is high or low in a period of 3 or 15 minutes or even up to 1 year.

2. Margin (The Margin for Binary Options Trading and Forex Market)
Differences in binary option trading Forex and the second is the margin. The minimum deposit Forex trading can start at $ 10 (depending on the rules and regulations of the broker to use) for one lot, while the minimum deposit required on binary option trading could starting from $ 1. Margin Forex and binary systems are also different. For Forex traders, we must invest as margin with a value corresponding leverage that be our choice. and increase funding if floating loss experience, that when we suffer losses and our margins are at a low point, we would be exposed to a margin call that usually makes us think to increase investment, and we can not do the transaction.

While in the binary system is not applicable margin that traders never experience a margin call. in this investment trader will benefit many times over from capital or capital will be lost if the predictions trader misses. Spread (difference in price) Trading Forex usually starts from 2 pips, while the binary Option trading system applies not spread. Furthermore, the contract traded between Forex and binary option trading is more or less the same that the Forex (foreign exchange), gold, commodities and stocks.

3. Order Type (Kind of orders on the Binary Options & Forex)
Differences in Forex and binary option trading next is the kind of order. In order that the main Forex investing is buy sell, then OCO (One Cancels Others), limit, stop limit and trailing stop while the combination of these orders are, buy stop, buy limit, sell stop, and sell limit. While the types of orders that binary option asset or nothing call / put, cash or nothing call / put, touch and no touch there is some binary option brokers who apply like conventional trading system as an example, we can sell goods / our contract before the contract finished.

4. Additional charges (The Spreads on the Binary Options & Forex)
Differences in Forex and binary options trading next step was for Forex trading there are additional costs in the form of a spread or difference in value of the currency pair bid and ask prices, the cost of swap or rollover when funds stay. While in binary trading there is no such thing that there are only considering the high and low market direction. But for the record there is also a binary broker that implements spread, although not exactly the same as Forex trading.

By mohammad irfan