Why Forex Binary Options are better than Spot Forex -Try Binary Option Trading Strategies

Why Forex Binary Options are better than Spot Forex Binary Option Trading Strategies

You may be one of the many who are catching on to the great profit making operatives of Binary Options.

Well on behalf of folks who are not familiar with, Binary Forex Options, Binary Options are a type of option whereby each contract you purchase pays out a $100. In a binary deal you are pretty much betting against or for a result. For instance, there maybe a binary contract that says the GBP/USD will close above 1.0824 at the end of the week. You would either sell this result (bet against it) or buy it (bet for it.) If you are right, then you win $100 per contract, and if you lose then you only lose only what you sold the contract for.

Why Are Binary Options Better Than Forex Trading

Ok, So let me explain to you why Binary Forex Options are better than Spot Forex:

Reason 1 . This is most key, the reward to risk ratio on Binaries is Much Much higher than Spot Forex. You can buy your typical binary option for $20 per contract (and some you can buy for $5!) This means if you win, you gain 5X your investment, or what you risked! ($20 x 5 = $100) To do this on a Spot Forex Position you would have to travel into positive territory that is five times your stop loss! This hardly ever happens because the Forex market is like a thrashing wild animal , and it's hard to tell when a turnaround is in progress. Most Spot Forex Traders more often than not only have a take profit that is around the equivalent of their stop loss. This means that a lot of Spot Forex traders are only gaining what they risk.

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Reason 2 . You can't get stopped out in Binary Forex Options. You'll snooze better at night not having to be concerned about whether or not your position is going to get stopped out, regardless of the fact that price is in due course going in the direction that you thought it was! (You can get timed out, of course, but when you consider there are WEEKLY Binary Forex Options, it's really not a problem.)


Reason 3 . There is no devious broker problems like in Spot Forex. You don't have to worry about re-quotes or widening spreads with Binary Forex Options. And you just don't have to lose sleep about stop hunting in general.

Reason  4 .You can Hedge with a single account with Binaries Forex Options. And because your pay out is so much higher than what you invest/risk, hedging makes perfect sense with Binary Forex Options. Unlike Spot Forex, where the risk to reward ratio is relatively low. If you buy a binary contract for $25 and sell an opposing Binary contract for $25, the payout is $75 even after your losing side fails!

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Disclaimer

Risk Exposure: The information contained in this article is for educational and news purposes only, reflecting the current personal opinion and observations  of one or more of the Forex Review team  and is NOT designed, construed or believed in any manner to be trading advice. The opportunity for profit creates a corresponding risk of loss. Anyone wishing to invest in any of the products mentioned should seek their own financial or professional advice.

"Stocks, Options, Binary options, Forex and Future trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the stock, binary options or futures markets. Don't trade with money you can't afford to lose especially with leveraged instruments such as binary options trading, futures trading or forex trading. This website is neither a solicitation nor an offer to Buy/Sell stocks, futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results. You could lose all of your money fast due too: poor market trading conditions, mechanical error, emotional induced errors, news surprises and earnings releases. "