Although we tend to confuse, binary options and forex have differences. First, binary options allow forex speculation. Which is not the case in the opposite direction. The Forex is actually the foreign exchange market, banks, financial institutions and individuals will exchange their currencies for already more than twenty years. What is the difference between these two methods of investment markets?
Forex Binary Options and Features
The Forex or rather "Foreign Exchange" is a whole the currency market. A trader dealing forex is active, but only in the currency market in which it can speculate on the now legendary duo: "the euro / dollar." It has the ability to place its funds directly in the underlying asset or in derivatives.
As for binary options, it is a valid kind of investment on more underlying assets, such as materials first, actions or Forex. They can produce a substantial leverage and generate big profit. Binary options are a derivative product, the value of the underlying flows. In most cases binary options, it is possible to output a position.
Most binary options Forex reports
Some actions are possible on binary options and are not in Forex. Binary options include the ability to process more active, and Forex is included in these assets. With these, the losses are reduced to invested funds and no more, which is not the case in Forex. In addition, the broker binary option does not apply any safety margin blocking. There are many types of possible investments on binary options, ie the option High / Low, Zone, One Touch and many more. As part of binary options trading, traders have greater freedom of investment. The latter in fact benefit from the personalization of binary options through the "builder". Finally, no commission is performed on binary options, while in Forex, the commission is proportional to the order.
Remember to follow economic news and more information find 10 tips on binary options here.
In short, binary options offer many advantages compared to Forex. We can already mention the simplicity of the product, which aims to predict the orientation on the market, within a specified period. Yields to maturity are defined beforehand, reducing the risks. For novices in the field of trading, binary options are therefore easier to digest compared to Forex, but beware of scams unsavory brokers. Fortunately organizations like the AMF on the eve online trading. Here is a bfmbusiness article about it on this page.