Before a man who decided to try his hand in the financial markets is often the question is: "What do you choose, or Forex Binary Options?" In this regard, there are additional issues. What type of trading is preferable? What is more profitable, where it is better, where it is easier to make?
Undoubtedly, trade binary options и Forex have certain differences, and to determine the choice, you need to understand what are these differences.
№1 amount of profit
Based on the value of the deposit and the amount that can be earned with the money, the binary options are in a better position, than forex. In the binary options in the event of a successful transaction the trader receives to 90% profit. For example, investing $ 10 deal, the trader earns a fixed amount, which is equal to $ 9. On the Forex trader will have to choose a great leverage, and wait for a significant rate of growth.
№2 Simplicity and convenience
As for software, it is free and there and there. With the only difference that for forex trading, you have to download MetaTraderThere you can open transactions and analyze the market. In binary options do not need to make complicated settings and do not need to download anything and install: expiration time, the transaction amount and direction of price movement are installed directly on the broker's platform. For the analysis of the market is enough to use my live schedule.
№3 Spread
Forex brokers are actively spread is used. Spread - The difference between the selling price (ask) and the purchase price (bid) foreign exchange transactions in the forex. It can be both fixed and floating. For better understanding, imagine that you see in the Bank and at the cash register courses for sale and purchase, the difference between the sale and purchase and has spread (the bank's profit). Thus, opening up trade in the forex broker, the trader immediately receives minus a few points, and the market has shifted in the right direction, the trader was able to earn. In Binary Options Brokers no spread. Broker in case of a successful transaction the trader pays to 90% gains. 10% retained by the broker. The smaller the percentage of the profit on the transaction, a trader, the more goes to the broker.
№4 Risk Management
In forex, there are concepts «Stop Loss» (Stop Loss) - A way of limiting losses on account management. The actual instruction to close a position under unfavorable movement of prices and to receive a loss, which will depend on the number of points the drawdown rates. «Take Profit» (Take Profit) - The exact opposite of "Stop Loss" is a way to make a profit at a favorable price movement, profit depends on the number of points of growth of the price. "Stop Loss" and "Take Profit" are set by the trader. The binary options trader knows in advance the percentage of profit for its deal in the case of a favorable outcome. profit percentage is set by the broker and usually is within 60 - 90%. In the event of an unfavorable outcome, the trader loses only the amount invested in the transaction.
№5 Expiry Time
The binary options is the concept "expiration" by Eng. expiration and indicates the expiry. Expiry time - Is the period from the beginning of the option until its end. In forex there is no such, the lifetime of the transaction depends on the activated "Stop Loss" and "Take Profit".
I compared to you Binary Options and Forex. Each type of trading has its advantages and disadvantages. What for you is more suitable up to you! Most experienced traders combine and trade binary options and forex. Novice simpler and easier to deal with binary options.
PS Remember: learning and experience - this is the best way to start making money on the financial market.
