Forex is a very popular form of investment these days as it allows investors to speculate on the movements of currency pairs, such as the EUR/USD and GBP/USD. One of the primary reasons for its popularity is that many beginners are lured to Forex trading because of its enormous daily turnover which is rumored to be in excess of $3 trillion. They erroneously believe that with such a large amount of money in the offering that they should easily be able to snatch just a small percentage of it. Unfortunately, reality and statistics disclose an entirely different picture by revealing that only a small percentage of traders are successful. The main culprits behind this dismal result are the many factors contributing to the production of complex price formations making the directional movements of currency pairs both hard to predict and difficult to trade profitably.
Binary Options Brokers Offer a Wide Range of Forex Binary Options Currency Pairs
Most, if not all, binary options brokers offer a large selection of Forex Binary Options currency pairs to trade.
Advantages of Forex Binary Options over Direct Forex
Due to the complexities of spot Forex trading, novices are confronted by a steep learning curve that they must overcome in order to generate consistent and reliable profits.For example, one of the biggest problems of trading Forex directly is that traders must always determine not only the direction that the price of a currency pair will advance but also its magnitude or size. Such calculations can be quite intimidating especially less experienced traders. Consequently, with the prime intent of simplifying their trading decisions, many investors have opted to utilize Binary Options Forex as an alternative method to trade Forex because of the many powerful advantages they offer. For instance, if you activate a binary option using a currency pair as its underlying asset then you will only need to predict the direction in which price will advance or decline without the necessity of evaluating the size of its movement. Just on its own, this is an enormous simplification as it entails that should you trade a ‘CALL’ binary option and the price finishes just one pip above its opening price at your selected expiry time, then you will be in-the-money. Similarly, a ‘PUT’ option must expire only 1 pip lower than its opening or strike price in order to register a profit.
Another vital task that you must carefully assess in order to directly trade Forex profitably is to devise a well-proven money management strategy so that you can control your risk exposure per trade. However, if you trade Forex Binary Options then you do not need to undertake this very complex procedure because you will always know exactly what your pre-determined profits and losses will be even before your options are executed.
In summary, as you do not have to perform complicated processes, such as calculating the positions of stop-losses and profit targets, the entire Forex trading process is dramatically simplified by exploiting the benefits of Forex Binary Options. In addition, your educational requirements will be substantially reduced. It is for all these reasons that in the battle between Binary Options VS Forex, Forex Binary Options have a great advantage.