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  1. #1
    Solid Member

    Difference between forex and binary? !!!

    Hay, I am new to trading and my question is if a successful binary options trader can be a successful forex trader without a lot of learning.

    Regards

  2. #2
    Senior Member raymond09's Avatar
    A successful Forex trader can easily become a successful binary trader but it would never work with just little bit more learning a binary trader to a forex trader.
    One of the most difficult aspects in Forex trading is the exit strategy, and with binary you know when your going to exit before you enter.
    Imagine having to worry about your entry and exit, so some times exiting to early and some times exiting to late.

  3. #3
    Veteran Member Ammeo's Avatar
    Quote Originally Posted by crimson69 View Post
    Hay, I am new to trading and my question is if a successful binary options trader can be a successful forex trader without a lot of learning.

    Regards
    There's not much a difference between trading forex and trading binary options except that forex trading depends on values while binaries trading depends on directions. the technical and fundamental aspects remain the same..

  4. #4
    Active Member rongold's Avatar
    Quote Originally Posted by Ammeo View Post
    There's not much a difference between trading forex and trading binary options except that forex trading depends on values while binaries trading depends on directions. the technical and fundamental aspects remain the same..
    Most of your statement Ammeo is right, but I couldn’t agree that there is no big difference between both types of trading. Binaries are really a matter of direction, but they are fixed in their outcome as a nature so the time is incorporated in them, so not only direction but proper timing of the entry points is needed. In the other case – forex the most important element is value – entry price and exit price, it is not so important the precise timing as we could enter early and scale up or enter late but still in the right direction. The complication in forex trading and in all other classical types of trading is that you have to place stop loss and take profit targets, which is very complicated especially in conditions with very changeable volatility. In binary options there is no such a problem like exit strategy, the only thing we care is the entry moment, but we should be much more precise in this selection, so both types of trading have their positive sides and problems, but I think binaries are much easier for new traders to start.

  5. #5
    M.J
    M.J is offline
    Veteran Member M.J's Avatar
    Quote Originally Posted by crimson69 View Post
    Hay, I am new to trading and my question is if a successful binary options trader can be a successful forex trader without a lot of learning.
    Regards
    Usually traders come from forex to learn binary strategies. A newbie entering directly into binary options trading world may not survive in forex trading world. WHY?
    Because.
    1- A 1-pip win in binary options will give more than 70% profit so binary options traders may not be able to gain many pips in forex. They may let their trades run for longer period hoping to get maximum profits which could result in a series of losses.
    2- Forex traders have very different strategies which r mostly not bound my time. Binary options have time limits. So binary options traders will trade with same style in forex but wont be able to get same profits (not even nearer). Because of the reason 1.

    Above two reasons can also be explained in terms of risk.

    There may be other reasons. So a forex trader will also take time to adjust in binary options but adjustment of binary option trader in forex trading is difficult.

  6. #6
    Veteran Member uj.forex's Avatar
    yes, binary options are 'all-or-nothing' type of trading... heavy profits, heavy losses.... its more like betting.... plus, u have certain options in there as to it may or may not be mandatory for u to exercise that option.... also, it has expiry dates, whereas in forex u dont have that....

  7. #7
    Junior Member nick_ross's Avatar
    I don’t think that binary options trading is just like betting. It is some kind of bet to place a binary option trade but it still include the price direction and the entry price which are two different quantities. There are a lot of possibilities for your entries to be activated. It is not just “all or nothing” kind of trading because you could hedge your activity with other options traded simultaneously.

  8. #8
    Veteran Member uj.forex's Avatar
    of course there are certain hedgin strategies, but fundamental thing is PREDICTION of the direction, which simply could be categorized under betting... and yes, many people take it ALL OR NOTHING thing, but many people play safe too....

  9. #9
    Junior Member
    There are some difference between forex and binary. Those are you can start trading directly with binary option because you do not need to download any application to your personal computer. You can just sign up and deposit funds to start trading in binary option. But in forex trading you must have to download a application to start trading.

  10. #10
    Specialist Member LesterK's Avatar
    Quote Originally Posted by rachel89 View Post
    There are some difference between forex and binary. Those are you can start trading directly with binary option because you do not need to download any application to your personal computer. You can just sign up and deposit funds to start trading in binary option. But in forex trading you must have to download a application to start trading.
    Hi Rachel,
    Welcome here! You are not totally right because there are web trading platforms for forex too, the main difference is that with binary options you have fixed profit and fixed risk. With forex your profit on a single trade is not limited, but you potential loses are also not limited before you place a stop loss order. Binaries are better way to trade not only to newbie but also to more experienced traders, because they offer better risk management and less trade maintenance (ones the trades are placed, they don’t need further examination).

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