Investing In Forex Binary Options

Binary options provide you with a transaction on which you are betting against or in favour of a possibility. Forex binary options are a type of option that will be paying you $100 on every contract that you are buying. To further explain with an example if you are holding a forex binary options contract of EUR/USD of 1.0822 at the end of the week then you have two options. Option 1 is you can try to sell this outcome which would mean that you are betting against it. Option 2 is you can buy the outcome which would mean that you are betting for it. Now in either case if it turns out that you are right in your proposition, then you would be able to win $100 per contract that you have. On the other hand if you lose at the end of the week then you would only end up losing what you had sold the contract for.

Forex Binary Options and Spot Forex Investment

forex binary optionsWhen you compare Spot Forex and Forex binary options you would surely come to a conclusion that forex binary options are way better to deal with as compared to the former. This is because when you risk on forex binary options then it is way better than risking it on sport forex options. To further explain with an example if you are buying forex binary options for $25 per contract then it means that you would be gaining atleast 4 times the investment. How? If you are right, then you would end up gaining $100 which is 4 times the amount that you had actually bet at the beginning. For that reason you can buy forex binary options at $5 as well and in that case you end up gaining 20 times what you had risked. ON the other hand when you are risking on a spot forex market you have to be literally top of the lot to be able to tell when the reversal is in progress in terms of making a profit. Also the traders betting on Sport forex only gain whatever they are risking.

Many people complain that when they had been trading on spot forex over the past years then it had left them mostly broke because of the type of risking and the formula to turn around the money that they had been investing on. Mostly Spot forex trading is a strict no – no for starters and novice traders. It is meant for experienced traders only who have greater predictabilities. On the other hand binary options signals are suitable for any kind of trader, starters and experienced ones alike. Usually most trading companies have weekly trading opportunities available that start on a Monday and end on Friday. A sincere advice for traders who have tried Spot forex trading and not yet put their hands in forex binary options is you have to try out this once and after that it is a guarantee that you would not want to return back to Spot forex trading again for a while.