Many people tend to look for better options when trading in forex. The HiWayFX website provides both options, the user can choose either depending on his preferences. One question which arises is what are the differences and the similarities between forex and binary options? For this purpose one should have an inherent understanding of binary options and how they work, pay or the risks involved in them.
Binary options are easier to understand and simpler to use. They are in fact quite similar to foreign exchange or forex but involve fewer risks as compared to forex. Binary options are called FRO which denotes a fixed return option. In order for this to work a person must assume the correct direction in which the market will be heading at a particular time period. If the prediction or the speculation of the person is right about the market, he will get a fixed price no matter how much the market fluctuates. The HiWayFX website has a binary option; all you have to do is sign up and open a binary options trading account.
What are the Similarities?
Both take place 24/7 which means the person can trade anytime he desires.
Both can be started with a low capital which is approximately $100 or more.
People gain or lose money based on the way the market is moving.
What are the Differences?
Binary options give you the benefit of managing your risks. Prior to making a binary trade, you are well aware of what you are going to lose if the aftermath is detrimental and you’re also aware of the profits you’re going to make if the implications are positive.
Binary options are not variable whereas forex trading is variable. In binary options you lose or gain a fixed amount of money when the trade is closed but in forex trading you don’t have any idea of the amount of money to be gained or lost until the trade is closed. Therefore binary options are less precarious.
In binary options, if you make the right choice, then the payout is 60% to 80% but if you make an error in judgment, you will lose all the monetary funds you invested in the first place.
The fluctuations in the market are also quite different for both of the options. In forex the more the movement the more the gain, whereas in Binary it is fixed no matter what the movement.
How to Earn in a Binary Trade?
There are two ways a person can earn from this option. One is “CALL” and the other is “PUT” Option. The expiry time is also to be noted here. Let’s say a person speculates that the price of an object will go above a certain point. This point is call strike price. Now if the price goes up at this point, the person gets a CALL option and wins a fixed price. Same goes for the PUT option which is given when the price goes below a certain point and vice versa.
The Bonus is not granted automatically.
The client must claim / request the Bonus by
contacting finance department
at finance@hiwafx.com
or via livechat.
Terms & Conditions
The client must claim / request the Bonus by
contacting finance department
at finance@hiwafx.com
or via livechat.
Terms & Conditions
with
M Samer Al Reifae
Official HiWayFX Representative in Romania
samer@hiwayfx.com
+40 734 277 757
Official HiWayFX Representative in Romania
samer@hiwayfx.com
+40 734 277 757
- YOU ARE NEVER LEFT ALONE -
YOU SHOULD NOT TAKE ANY MATERIAL posted on this BLOG AS RECOMMENDATIONS
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
Do your own due diligence.
No one knows tomorrow's price or circumstance.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
