Binary Forex Options
More people are discovering the advantages of forex binary options, which have become very popular in recent times in the UK and around the world. This instrument is easy to both learn and operate. The only thing it’s about the price direction: rising price or falling price.
The Forex Market
When dealing with Forex (Foreign Exchange) as soon as it is about to change one currency against another. Forex market is by far the largest market in the world with a trading volume of more than 4 Trillion dollars, which traded by most of the large banks, central banks, currency speculators, multinational corporations, and governments. The foreign exchange market is an OTC-market (over the counter). This means that brokers and dealers negotiate directly and that there is no central place such as the stock market. Therefore, there is not a single price of a currency, but several little different prices depending on who you are dealing with. The main trading centers are in London, New York, Tokyo, and Singapore. When the Asian trading session ends, then starts to Europe, and after the so begins US stock trading. After that everything starts again in Asia – The only break on the weekends. Forex market is, therefore, a 24/5 market. The market is divided into several levels. At the top, there is trade between .the major banks in which more than 50% of all transactions made Then follows smaller banks and multinational corporations, investment funds and hedge funds.
Binary Options and Forex Trading
Binary options are an excellent product to trade currencies. In the traditional Forex Spot Trading must be words that Pip, Lot, Cable, etc. Before you even think about starting to trade the Forex. Moreover, it is difficult to calculate the risk taken and how much profit or loss you can get. So it is not binary options. You can start right away because they are so easy to trade. Do you think that EUR / USD will go up to the end of the day? Then it is just to buy a “call” -Option- which expires at the end of the day and you are done. If the price goes up, you will get a fixed payment, usually between 70% and 90% of your investment. If the price goes down, you will at losing your investment. You always know the exact amount of money that is in the pot. You bet than the price movements of an underlying asset, in this case, the EUR / USD.
Forex options are a great advantage
Forex market is known to be very volatile. In trading on the spot market, it is very common to put the “stop loss” -orders to protect yourself against undesired price developments and huge losses. If the price turns against you, the position will automatically be closed at the “Stop Loss” mark. This is a good thing and necessary to limit your risk. Because of currency market volatility triggered these “stop-loss” -orders often even though the price might have been moving in the right direction for you. When you trade binary options do you know your potential profit and risk taking? You do not need to use the “Stop” mark.