Foreign Exchange vs Binary Options.:A never done before comparison
Foreign Exchange vs Binary Options. A never done before comparison
Binary options and FOREX both have become more popular in the trading world. The binary options offer high profits and returns and the FOREX offers high risk and high returns. We have brought to you the comparison between two of them, taking all aspects in mind. Let us start with the definition of the FOREX and Binary options.
Definition of Foreign exchange: While dealing in foreign exchange, a person will deal in the currencies of different countries. If the currency value increases then the person will be in profit and if the value decreases then the person will face losses. Overall, the profit will be depending on the currency rate fluctuation.
Definition of Binary options: While dealing in binary option, a person only has to predict the price of the asset, whether it is going to increase in the future or decrease. If you think the price of the assets is going to increase then you place a call before time. If the future prediction is right, then you will gain a huge amount of profit.
– Profits and Losses occur from both of them
Forex: If there Foreign exchange, profits can be unlimited. You never know when your prediction is right and you gain a huge amount of profit. There are similar chances of losses also involved. Both profit and losses are managed by the investors.
Binary options: In the Binary options trade, you get to know about the profits or losses which may occur. Many of the brokers offer huge amount of profits and many of them incur only a small amount of loss, depending on trader’s investment amount.
– Closing of the market bid
For Forex: Market risks are the option to be chosen by the investors. The person who is going to invest has the option of closing his position anytime. He can withdraw anytime from the bid he has made. If he thinks that he is about to suffer from the huge loss or he is going to loose the invested money he can close the position.
Binary options: A person dealing in binary options undertakes something different. Before he is about to trade any amount, he himself has to decide the expiry of his position. When the expiry time arrives, the trade of that person automatically closes.