Even though they share a common nature as financial market trading, Binary Options differ from Forex in some unique perspectives.
The increase of money and investments in the global economy has lead marketers to design technological development for new markets. Despite financial fluctuations, it continues to grow and market trading has increased its popularity in recent times. That is why Binary Options has greatly impacted traders in the financial market industry just as Forex has. But the question is, “Is it worth trading Binary Options over Forex?”
Binary Options has established a unique advantage for itself that continually attracts traders of all levels of expertise. They are so simple and easy to comprehend, especially for novice traders. The fact that they already know at the start how much money will be at risk makes beginners more comfortable when trading. The high return of investment also means more interest and engagement.
Both Binary Options and Forex have profits and losses. The big difference in trading binary options is that they don’t require you to purchase and then wait for long time frames to sell to earn a profit as Forex does. Binary Options Trading simply allows you to trade on your prediction of whether a particular commodity or currency will increase or decrease over a specified time frame.
With binary options, a trader can expect one of only two outcomes. If the prediction is right, you profit in real time. And if you lose, you already know how much money was lost. As simple as that.
When trading Forex, you are attached to a specific investment, as you purchase them. So when that specific asset drops its value, you don’t just lose the chance of making a profit, you also lose all the funds you put in to that investment.
It is evident that Binary Options could become worth trading even more than Forex. With its low minimum capital investment, easy and dynamic features, and highly profitable payouts, there is no doubt that it could engage more traders in the future.