Forex trading also known as Currency Foreign Exchange has been a well know type of investment for many years. Traditionally speaking Forex traders used to invest their money in a certain foreign currency under the assumption this currency rate in the world trade currency exchange market would rise and would then sell the currency which would produce a profit.
Forex trading is much easier nowadays and is conducted in a form of virtual trading centers which allows traders to buy and cell foreign currency on advanced trading platforms. Traders using this advanced system will be choosing a currency pair let’s say JPY VS the USD and will be choosing which pair’s price will rise or fall and to what extent Vs its currency pair.
The Forex system has proven to be very popular and is one of the most traded financial tools generating a revenue of more than $25 Billion a day. Traders from all over the world can now invest their money in Forex.
While Forex was taking the lead in newly innovative trading a younger brother was born in the form of binary options trading. Binary options arrived to the financial arena in 2008 and have completely changed the market. They offer extremely high return in just minutes from initial trading, however high profits do have high price which can lead to a trader losing his entire investments within minutes.
As oppose to Forex trading binary option doesn’t require any software downloading, the advanced trading system is completely fully web based and can be accessed from various devices as long as they have an internet connection; one account for various devices. One other advanced feature is the ability to predefine your trading results, in binaries there are no surprises, and traders see the risk and potential profit including the options expiry time before they actually start trading.
Trading binaries is allowed on a wide variety of financial assets, in fact almost any world-wide traded asset can be traded on this system; Stock, Commodities, Indices and Forex options are all there.
Trading Forex binary options Takes Foreign Currency trading to the next level; it’s easier, faster and requires only the price movement i.e. up or down. Trading Forex binary options is also made on a currency pair, trading is based on the price prediction of one side of the pair. For example USD/GBP if a trader believes that the USD price VS the GBP will fall by even one pips then the trader will have purchased a Put Forex options on this currency pair, the option expires in just 5 minutes and in case of a true prediction will provide a profit of 85%. If the prediction is incorrect the trader will have only lost his initial investment.
There are many way to trade Forex and they all have one thing in common which is a trading strategy. Like all financial investments traders must have a strong binary options strategy prior to trading, otherwise they will be spending their money on the roulette which might be enjoyable and migt even produce some profits but in the long run gambling is just not worth the risk.