March 8, 2012

Forex vs. Forex Binary Options

Binary Options Graph Img

Forex trading is very well-known in the investment world, while binary options are becoming more popular all the time. There is a specific category of binary options in particular that has caught the attention of many individuals: forex binary options. This is a type of binary option which lets you trade binary options with forex. In order to understand what this entails, it is necessary to explain the differences between forex and binary forex options, and the many benefits of binary forex options.

The History of Forex Trading

Forex trading has a great history, and has been very widely traded since the 1970s by global speculators. Market actors include day traders, commercial banks and central banks. The forex market is very volatile and there is high trading volume for most currency pairs. If you are new to forex trading, then take note that currencies are traded in pairs. For example, there is the EUR/USD currency pair. From the late 1990s forex started to become traded online via forex brokers. The number of these brokers has multiplied significantly today. There has is now a new phenomenon: binary options. Within binary options, the most popular asset type is forex binary options.

Forex Binary Options

The popularity of forex binary options is quite spectacular, as this was not foreseen by experts. You may trade these binary options from as low as $10 with an online binary options broker. You can make as much as 85% return in less than an hour. There is also no leverage, meaning only the funds you put into a trade are at risk. However, with forex trading the leverage factor can wipe out a trade in just a few seconds. This may be the case when there is an important economic news event. This has led many people to become binary forex options traders.

What’s Next For Binary Options?

Forex binary options will continue to be the most popular binary option category in the near future. The truth is that other types of binary options are also popular such as stocks binary options and commodities binary options. If there is a continued development of special software such as trading signals, this may lead investors to put their money into gold binary options and stocks binary options. However, this is just speculation, and the trend has not changed. Start trading binary forex options now and take advantage of the latest market volatility.