Binary Options vs. Forex – Which Is Better? You Decide
I am David Soto and I want to explain briefly what the difference is between binary options and forex.
It was very confusing to me in the beginning and I never really found someone to explain it to me where I could understand.
To be honest, forex is exactly the same as binary options. You are betting whether the price will go up or down, but the key difference is that with forex, there is no expiry time. This means that you can enter and exit a trade whenever you want and you get to decide how much profit or loss you want to make.
In binary options, the amount you earn is a percentage of the amount you bet on the trade. For example, you can win, depending upon the broker, 70-80% of the amount you wagered (0 bet = – won), and if you lose the bet, you lose the entire amount.
In forex, your wins are measure in pips or Percentage In Points, which is a finite measure of the currency at hand. A pip is the 4th decimal place of the currency actual measurement. For example, a currency might me measure at 0.10436 and ‘3’ would be the pip.
For every pip the price moves up or down, you win or lose what is called a “lot size”. Your lot size can be as little as one cent or 0.01 and as high as or 8.00.
So for example, if the price goes or down 100 pips and you lot size is or 1.00, then you earn or lose 0. Very easy to calculate.
If you would like to learn more about forex and binary options, I encourage you to join my two different Facebook groups for each.
For my forex group, Forex and Futures Made Easy, you will have to be privately invited so I can weed out people that want to spam my groups.
First join my binary options group at http://facebook.com/groups/BinaryOptionsMadeEasy and then request to join my forex group as well.
Contact me on Facebook at http://facebook.com/sotod3496 for any questions or to be involved in what I do.
Thank you and I wish you the ultimate success in trading!