Article from 24option.com
Many investors that want to be involved with the foreign currency market grapple with the idea of trading either forex or binary options. Each has its own advantages, but overall, trading currencies, as well as other assets, is easier and potentially more profitable with binary options.
Learning how to trade binary options is very easy. All you need to do is pick an asset, a price direction and investment amount. You will always know your potential payout immediately and never have to worry about the potential profit amount. If you finish “In the Money,” you’ll receive your payout with no hassles. When you trade binary options you don’t need to see huge market movements, like is required in forex trading. If the market price moves even the slightest amount, you can still profit from a binary options trade.
Unlike forex, where you can only trade currency pairs, binary options trading also gives you the chance to trade stocks such as Google and Facebook, commodities like gold and oil, as well as indices from around the globe.
Furthermore, with binary options you have many more choices for short term trading, allowing you to make trades in as little as 30 seconds. Some binary options brokers also offer an “early closure” feature so that you can close early when you are in the profit zone for a percentage.
Besides the “early closure” feature that is offered by some, the prices and expiry times are fixed when trading binary options. This is very different than with forex, which allows you to close when you want and for how much you want. This can be advantageous for some investors, but many enjoy the consistency that is offered by trading binary options.
To help you get started, many binary options websites offer bonuses and competitions, as well as education centers to learn the basics and improve your trading strategy. Once you have the basics down you can move on to incorporating technical and fundamental analysis into your strategy and solidifying your trading techniques.
While neither binary options nor forex can guarantee profit, when trading binary options you will always know your potential payout and the risk involved. It’s simple to get started and to learn the basics of binary options trading, and there is no need to learn confusing terminology that may intimidate some new traders. If you are not sure which to trade, try out a few websites by opening a demo account and see for yourself which you prefer.
When you trade currency pairs with binary options you never have to worry about lags or spreads, and the confusing terminology is taken out. All you have to do is pick the asset you want to invest in and wait for the expiry time. Trading with binary options allows you to take advantage of the currency exchange markets without having to become in expert in forex.