By now you have probably heard about Forex trading. You know that Forex is a multi trillion dollar market, you know that you are able to trade large sums of money with minimal capital, and chances are that you know just how complicated the actual trading can be. What you don’t know is that there is a good alternative to Forex trading: Binary options trading.
Binary options trading is an up and coming space right now with many Forex traders testing out the Binary options (B.O) waters. Why are we seeing so much crossover between Forex trading and B.O?
The answer is quite simple. The two industries are very similar in a lot of ways. To name some of the areas that there is overlap, when B.O trading, you can actually trade Forex currencies. In addition, you are in essence predicting the movement of the asset based on the analysis of the Forex market.
In addition, just like in Forex trading, Binary options requires a very small amount of initial capital and the option to profit is in both directions. If you predict that the asset will decline and it does, you make money and if you predict it will increase and it does, you also make money. Same as Forex trading.
So if there is so much common ground between Forex trading and B.O trading, why are so many people leaving the former and going over to the latter? Well, the truth is that as attractive as Forex trading is to many people, B.O has some clear advantages.
For starters, trading B.O is significantly simpler than trading Forex. You decide if you think the asset will go up or down and that is all. No charts, no analysis, no Fibonacci, and no retracements.
In addition, profits in Binary options are immediate and transparent. Finally, all binary trading platforms are Web based meaning you can trade binary wherever you are as long as you have internet connectivity.
Whether you choose to trade Forex or binary options, it is important to have some sort of a strategy, which includes your financial goals, your exit points, and an exact definition of how much money you are willing and able to risk.