By now you have heard of Forex trading. You know the Forex market is multi-trillion dollars, you know you can trade large amounts of money with minimal capital, and chances are you know how complex trading can actually be. What you don’t know is that there is a good alternative to Forex trading: binary options trading.
Binary options trading is currently a new market with many Forex traders testing the binary options (BO) waters. Why do we see so many crossings between Forex trading and BO?
The answer is very simple. The two industries are very similar in many ways. To name some areas that overlap, when trading a BO you can actually trade Forex currencies. In addition, you basically predict asset movements based on Forex market analysis.
In addition, just like in Forex trading, binary options require a very small amount of initial capital, and the profit option is in both directions. If you predict that the property will collapse, and it does, you earn money, and if you predict that it will increase, and so it will earn. Same as Forex trading.
So if there is so much in common between Forex and BO trading, why do so many people leave the former and move on to the latter? Well, it is true that BO, how attractive Forex trading is for many people, has some clear advantages.
For starters, trading BO is much easier than trading Forex. You decide whether you think the assets will rise or fall and that’s it. No charts, no analysis, no Fibonacci and no re-steps.
In addition, the profit in binary options is instantaneous and transparent. Finally, all binary trading platforms are based on the Internet, which means you can trade binary products wherever you are as long as you have an internet connection.
Whether you decide to trade Forex or binary options, it is important to have some kind of strategy that includes your financial goals, exit points, and an accurate definition of how much money you are willing and able to risk.