New players always face difficulty that whether they
go for Forex trading or for binary options trading.
The increasing popularity of such trading is the
basic reason behind the problem of the newbie that
which type of trading should they choose, Start your
trading career at
. We are
providing you some basic difference between these
two trading which can help you take a wise decision
while choosing the right trading.
Understand the basic difference when it comes to choose the right trading
Forex trading is basically a trading of currencies.
It is the process of swapping of a pair of
currencies between different countries. Due to
modernization, Forex trading is now done through the
digital devices like computer. Whereas Binary option
trading is the type of trading where the payoff can
provide only two possible outcomes, either you may
win or you may lose. It involves risk factors.
• Risk management:
It is one of the most important
factors which can help you to get clear difference
between the Forex and Binary option trading. Many
professional traders accept the fact that Forex
trading is comparatively much riskier than binary
option trading. It is because the Forex market is
often marked by very high leverage which reinforces
the chance of maximum wins and losses. In this
trading, a trader has a chance to earn some refund
on the capital which is invested.
• Rollover function:
Another big advantage of binary
option trading is ‘rollover’ function which assist
trader in case of risk management. It permits trader
to increase the termination time of the position
which has not turned into a profitable position.
Whereas this function is not applicable in Forex
trading. So, we can’t extend this time in this
• Trading accessibility:
Binary option trading is
comparatively much easier to place trades than Forex
trading. Trading through binary options generally
covers four steps which are choosing the asset,
choosing the size of your position, choosing the
contract termination and choosing the trade.
However, this process is not that easy in Forex
trading. In this trading, you have to figure out the
limit and stop orders, set the size of the position
with the price entry level and type of asset. So,
this process is quite complicated and time
• Managing risks and rewards:
In binary option
trading, you can get a payout structure which
enables traders to attain a risk to reward
quantitative relation that's rather more favorable.
This trade is different from Forex trading because
you are aware of the win or lose situation. In Forex
trading, it is difficult to guess the outcome of
trading because wins and losses are variable in
In Forex trading, a trader is not answerable for all
the profit and loss calculation, and it makes
trading more difficult because the trader can make
silly mistakes while trading which can affect
his/her trading account. But binary permits you to
create multiple trades in a single day. But this is
difficult in Forex because the trader is not aware
about that how long a Forex account will be open.