Understanding the Difference between Binary Options and Forex

[LoRio]

There's still binary options brokers ?

 

[scott11]

LoRio, outside of Europe, yes options brokers can be found, but they are very rare, as this business is treated as too risky. And to add to topic of this thread, I dont think that any newbie in forex world should start trading with options. It is just too risky

 

[fxoday]

I am never joined in binary option, but I see there are some promotion through inbox from the certain site as ads promoting behalf binary options broker that offer a bonus and I am not interested because forex still giving income and about legality, forex broker has regulated

 

[mcjono76]

I am new to the Forex Peace Army and its great to read posts like this. Great post and I generally avoid binary options...I just don't trust the brokers.

 

[perryjohn765]

i currently trade in forex.. is binary option better or the forex?

 

[Purekiller]

I stick with forex because based on what I have seen happening in the market and the online world it is clear that forex is a better option. I have tried both and still forex proved to be worth the time rather than binary options.

 

[Manalmeena]

I am never joined in binary option, but I see there are some promotion through inbox from the certain site as ads promoting behalf binary options broker that offer a bonus and I am not interested because forex still giving income and about legality, forex broker has regulated

I believe that your words are really correct. There is no discussion about legality, of course forex trading is legal in comparison with binary options which are already prohibited in several countries. I think that if you're a beginner in trading you'd better stay away of binary options because there are lots of scammers around there. Of course there is chance to build a successful career on binaries however it will take a lot of time to learn all the information about the mechanics of binaries, brokers and stuff like that. Novices have rather dedicate their time to learn this stuff about forex trding because forex has much more chances to lead novices to prosperity.

 

[sarah2701]

Which one is more profitable binary option or forex, till now I have only traded in forex. I want to know more about Binary option. Is it more profitable?

 

[Keithstyles1]

1. If you are a newbie in trading then it might be a very difficult choice for you to make as to which type of trading to go for: binary options or forex. Though both are online forms of trading but are relatively different from each other.
   
   What is Forex:
   The Forex market is the largest market in the world and is based on change in currency which makes the market unpredictable. The Forex market is a decentralized market and many currency pairs are traded. It involves buying, selling and exchanging currencies at the different prices. The market is open 24 hours a day and for 5 days a week.
   
   What is Binary Options:
   In Binary Options you have access to invest in many different assets such as commodities, stocks and currencies. Binary Options trading is a bit different from the Forex trading.
   
   Difference between forex trading and binary options trading:
   1. Volatility:
2. When talking about the forex market, then yes the forex market does affect when the market is volatile either low volatile or high volatile. Traders might be at the complete win and could get an opportunity to make profitable trades or they could face a major loss. As said, the forex market is a completely unpredictable market. Therefore, to overcome such volatility, a prior risk management is very important in order to save your trades from huge losses.
   
   A sudden volatility does not affect the binary options if you plan yourself in advance and invest in assets accordingly as per the assets and the expire dates.
   1. Timeframes:
3. In forex trading, there are different timeframes for trading, whichever trader chooses to. It could be for a second to months depending on the choice of the trader the trades could run for the specific time period chosen by the trader. Traders here can open and close the trades as per their wish.
   
   In binary options, binary trades have a particular timeframe. Here traders can not decide when to open and close the trade. Each and every binary option has start and end time therefore, traders need to select when the order expires before the trade starts because at the expiry time the trade itself closes.
   1. Variety:
4. Forex trading has four main currency pairs but there are even more currency pairs to trade on in the market depending on what trader wishes to trade on.
   
   Binary options got variety to trade on such as commodities, stocks as well as currencies. So it depends on the trader as to which one to trade on.
   1. Risk:
5. When we talk about risk then, in forex trading the risk is unpredictable as compared to the binary options trading. As forex trading offers more variability therefore, the risk involved here is unknown. Therefore, in order to protect themselves from risks and losses, traders should put stop loss while they run trades so that they could protect their capital from loss. Proper risk management can save the trader from having major losses.
   
   While, in binary options trading, traders already are aware of the profits and losses and hence the risk involved here is low as compared to the forex trading. Traders here enter the market and wait for expiry time. Though here the profits generated could be lower as compared to the forex traders.

Good information

 

[holycow]

Which one is more profitable binary option or forex, till now I have only traded in forex. I want to know more about Binary option. Is it more profitable?

If i would again have to choose between the forex or binary options then i will prefer forex for being evergreen product. Binary options can be good if you find any good broker but still we see a lot many complaints from the binary option traders, maybe it still in it in fancy and require some more time to mature.