How Binary Options Really Work?

[ituglobal]

I’m clearly concerned about the enigmatic nature of binary trading. Since I was introduced into the wonderful world of Forex trading, brokers and vendors have been bombarding me with the notions on the possibility of trading binary options. I’m now confused: are binary options better than Forex trading? What are the similarities and differences between Forex trading and Binary options? What are the pitfalls? Is it advisable to try it out?

 

[Enivid]

It is not "binary options" vs. "Forex", because you can trade Forex with binary options. It is "binary options" vs. "spot trading". Options trading has its own advantages and disadvantages and is very different from spot trading, the only similarity is that you need some edge to be able to predict market direction or volatility.

 

[eyeball]

Optons

Binary options impose a dicipline on traders not present in spot tradng .You are required to make an up or down decision on price drection for a specific period of time.Your profit and loss are both limted to defined ammounts. In exchange for accepting those restrctions you recieve some advantages, princpally the avoidance of catastrophoc loss on any one trade as well as a simplfied risk/money management envoirment.In addtion, a much high level of leverage can be achieved over the trading day if worked properly--EB

 

[bkhsdsudhk]

I’m clearly concerned about the enigmatic nature of binary trading. Since I was introduced into the wonderful world of Forex trading, brokers and vendors have been bombarding me with the notions on the possibility of trading binary options. I’m now confused: are binary options better than Forex trading? What are the similarities and differences between Forex trading and Binary options? What are the pitfalls? Is it advisable to try it out?

Binary options just need to determine a period of time, up or down, more than a simple forex trading

 

[Elmira Nancy]

If, for example, you purchased a binary option for shares of a particular company, the contract is likely to stipulate that you would receive a fixed return if the shares of that company are trading above a strike price at the expiration date of the option i.e. if the contract expires "in the money".

If, however, the shares of that company are trading below the strike price at the expiration date of the contract, the contract will have expired "out of the money" and you would receive nothing at all.

In simple terms, the trader makes a decision about market direction i.e. up or down.

 

[Rambo35]

You are going to find lot of different answers on your questions and that is not going to be enough for you to know what's better. I've tried binary options and forex trading and made my decision where I want to continue based on the experience.

 

[Roseanne Garrison]

To get success in binary options, you've get experience first. My friend told me that.