Differences Trading Forex with Binary Options
Do you want to dive into the world of Forex Trading or Binary Options Trading? Check out the differences between Forex Trading and Binary Options Trading below.
Difference between Forex Trading and Binary Options Trading
As is well known today that the trading market is growing rapidly along with the times. Well, with the existence of one of the trading instruments that are currently popular and in the public spotlight, forex and binary options.
Where it is guaranteed to get the maximum profit in a fairly short time. Therefore, many trading platforms are offered by brokers to traders. Starting from forex trading, binary options trading, stock trading, coin trading and much more.
Well, from these platforms there are binary options trading and forex trading which can be said to be almost similar, only slightly different.
On this occasion, We will discuss the differences between forex trading and binary options trading. Please see the review below.
Trading Binary Options
Binary options are one of the hottest places to trade right now. Therefore, currently there are a lot of trading advertisements scattered everywhere and attracting people’s attention.
Where in just a short time you immediately get large profits, this makes many people interested in trading on this binary options place or platform.
Like one sentence from a binary options ad that makes people tempted. The sentence is:
“Even millions of people don’t realize that they can make $1000 in just a day without leaving their home and you are one of them.”
1. Understanding Binary Options
According to Mr. Sutopo Widodo, a Commissioner of HFX International, he explained that this binary option is a form of online trading instrument where traders predict the price of an asset will go down or up for a certain period of time.
Trading binary options is already very well known and quite popular in foreign countries such as Europe, America and many more.
In fact, the system provided in binary options is almost similar to forex, it’s just that binary options trading is limited by trade time. Where traders can only take advantage of prices going down or up for a certain period of time.
2. How Binary Options Work
On all platforms, before making a transaction, traders are required to register and create an account first.
After you finish creating an account, you will be given a demo account for real trading practice. When you feel you are proficient you can try or make a deposit on a real account.
The deposit itself varies, it’s just that it’s usually $10 or around Rp.140,000. Then, you as a trader can choose the asset index to be traded such as stocks, currencies to commodities.
After the trader chooses, then there will be instructions to enter the capital that will be used for trading.
Then if the capital has been entered, where the platform will provide a calculation of the profits that will be obtained from the transactions that have been made. Then, the trader can choose the transaction duration ranging from per second to per day.
Next, traders will be required to guess for the duration of the duration, namely whether the price will go down or up until the duration ends.
If your guess is right, you will automatically get a big profit. However, if the guess is wrong, then the capital that has been used for the transaction will be lost.
3. Differences between Binary Options and Forex
Many people still understand and do not know the difference between trading using a binary options platform and forex.
Even though in terms of systems and methods, they are different. For example, on the forex trading platform there is such a thing as margin leverage and spread, but in binary options there is no such thing.
In forex trading, you can hold, open positions to close positions at any time and there is no set time limit as long as there is such a thing as margin.
This is very different from binary options where traders when opening open positions must determine the time period in their trading.
The types of binary options trading include:
- Deriv
- Quotex
- Binomo
- IQ Option
- Olymptrade
Well, that’s a review of the differences between binary options trading platforms and forex that you must understand and know. By understanding these trading differences, you can determine what trading platform is comfortable for you.
