The Forex trading field is constantly developing and advancing. With a staggering $3 trillion traded daily in Forex, there is plenty of room for new services to join the game. Binary options are the new kid on the block and judging by the number of binary options brokers, they are here to stay.
So what are binary options and how are they different from regular Forex trading? Well, at the most basic level, options trading is exactly what it sounds like. There are two options, either the currency goes up or down. Open a position by guessing which way it will go.
There is a fair amount involved and, in theory, binary options trading requires zero preparation. Of course, if technical analysis helps you determine the direction the currency will take in the next hour or day, then it is a recommended tool in both trading fields.
However, options trading is generally much simpler than Forex trading. All platforms are web-based and all you have to do is click an up or down arrow. It really couldn’t be simpler.
Another great thing about options is that you know exactly how much you are going to gain or lose without the volatility risk of regular trading. This also simplifies the field of binary options trading.
Of course, the flip side is that there are a very limited number of reliable binary trading brokers you can choose from, unlike Forex trading brokers, which are available by the hundreds, if not thousands.
Options trading may be the newest thing on the market, but it is not right for everyone. If you’re someone who likes instant gratification and relatively small earnings, then it might be a field worth checking out.
However, if you are interested in Forex as a long-term career, then some might say that standard Forex trading is a better fit.