Forex binary options are just one of 4 main types of binary options you can trade. The other 3 are stocks, commodities and indices. Traders who have previous experience in forex have chosen to trade binary forex options due to their simplicity and wide use. This is not to say that other binary options offer anything less to the traders, but the high liquidity of the forex market makes forex binary options highly attractive.
The Important Leverage Factor
The ex-forex traders who now trade binary options understand the advantages that are available. One of the biggest of these risks is the leverage factor with a forex broker. Leverage can be as high as 400:1, meaning that you are trading with up to 400 times the capital you put into a trade, so your investment can be wiped out with a small market movement. Forex binary options allow you trade the leading currency pairs with the absence of leverage.
Forex versus Forex Binary Options
Forex brokers will often tell you that you will need to deposit $5000 or more to have a chance of making money. This is actually true, because you need a lot of capital to protect your trading account against potential losses. This is not the case with binary forex options, because only the f money you invest in a trade is at risk. Additionally, even if you binary option trade is very volatile during its lifespan, only the rate at the expiry time is important.
Popularity amongst Investors
Forex binary options are currently the most popular binary options among traders, because of the uniqueness of these options. Moreover, the volatility of the currency market is highly exciting, bringing much tempo to trading each day. This popularity keeps on growing as investors discover binary forex options and the profit potential which it entails. This is understandable, as you can make as much as 75% profit in less than an hour with many leading brokers.
Reap the Benefits Today
Once you start trading binary options, be sure to see what binary forex options have to offer you. You can trade the EURUSD, GBPUSD and other world leading currency pairs 24/5. What’s more, you can also trade stocks, metals, oil and indexes if wish to diversify your trading portfolio. Whatever assets you prefer, binary forex options trading is a must if you want to further your trading potential.
