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Monday, 6 May 2019

Some of the differences between Binary Options and Forex that can trap beginner traders


At a glance, Binary Options and Forex are both efforts to gain profits from the increase and decrease in prices on financial markets, without actually having related financial assets. However, the following differences in Binary Options and Forex have the potential to trap traders if they do not understand them.

1. Forex Rising Up and Down, Fixed Binary Options Risk
In forex trading, the funds available in our account (Account Balance) will go up and down along with how much profit or loss we experience. We can maintain the trading position for unlimited time, provided there is an adequate Balance Account. Suppose your prediction fails to reach within 1 hour, then you can leave the position open for up to 1 day or even more, until the price really reaches the desired target.

Also read : How to trade in binary options PROFIT IN 10 MINUTES
Also read : Accurate binary options strategy

In Binary Options, the risk is fixed, both the amount and the time. For example, you predict the EUR / USD pair will rise within 30 minutes, then open a position by risking USD100 funds. If the prediction is correct, then you will get 90 percent in return for the funds at stake, so you can bring home (100 + 90 = USD190) in 30 minutes. However, if the prediction is wrong, then the USD100 you are betting will expire in 30 minutes.

2. Forex Brokers Connect Traders to Markets, while Definitely Binary Options are Bandar
When you trade forex, you really do not physically hold the currency traded. However, your order execution is actually delivered to the money market by the broker (if the broker is ECN type).

However, Binary Options bro does not do that. When you open a trading position, you basically bet against the bookie. If you win, the dealer must pay you money. If you lose, then your money moves into the hands of the Bandar.

3. Binary Options Not Including Financial Assets
Well, this is the biggest misunderstanding among novice traders. Most ordinary people consider, because Binary Options uses Forex-like terms, such as EUR / USD, USD / JPY, Gold, Dow Jones Index, and so on, then surely Binary Options include financial investment as well. In fact, Binary Options do not include financial assets, but rather a type of gambling. The proof is, there are no Binary Options brokers who have regulations from bona fide government institutions.

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