Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.


Binary Options Vs. Forex Trading

Recommended Posts

Article By Thebinaryoptionsbroker.com


Binary Options Vs. Forex Trade


For any trading investment, investors must compare binary options vs Forex trading factors appropriately. In the past few years, binary options are becoming most common. The main reason being the options offers high profit returns and are easily traded. The binary option involves the betting over a currency pair that it will expire in-the-money. If positive, it returns a fixed amount, not withstanding how far the option goes. At times the option only pays off only if the option goes in-the-money, regardless of price at expiry. For example if a binary had a strike price of 1.3, the long position would return $100 per contract regarding the higher price than strike price at expiry. The options are standardized and traded on exchanges. On the other hand, in Forex trading, there are many shared features. They also provide the opportunity, but not the need to buy (call) or sell (put) a certain underlying asset at a particular price (strike price) by or on a particular date (expiry date).Forex trading does not involve currency pairing, but rather the future trading on the currency pair. It is the exchange-traded agreement to buy or sell at some point for a price that relies on initial factors.


When trading options, one has to predict if the price of an asset will go up or down from its current value over a given period of time. For instance, the current price of USD IS 1.31 and one thinks its might increase in the next hour. The individual can place the bet and wait for the one hour. Any correct predictions result to up to 80% profit on one's investment. While, Forex trading one speculates that the value of a particular currency will increase or decrease in comparison to another, with a target of making profit. For instance, when the current price of a currency is 1.4 and one thinks the price will shoot in the near future. One buys 1 lot of the currency pair and wait for the price to increase until the desired point before closing the trade at profit.


In options, margin is not used when trading. People can still make great percentage profits on their investments, so traders find binary options very attractive. The advantage is that an investor can never get a margin call. While in Forex trading, people use margin to trade. Each broker determines the maximum margin and sometime it can be up to 1:500. Margin allows investors to increase their investment capitals so that they can make an increased trade and make more profit for the winning trades.


In binary options, before making a trade, the investors will know the exact payout and loss return percentages to be made for the particular option at expiry. Brokers can offer payouts up to 80% or even more depending on the option traded. Other brokers never offer loss backs, this means that if an investor's option trade is a losing one, the investor will definitely loose the invested amount and not more. In Forex trading, the investors never know the maximum profit to be made on a particular trade. The investor can always regulate an order and be guaranteed some percentage profit if a stop regulation is initiated. Any losses and profits in Forex trading can be managed with the regulations to limit or stop orders. Actually, the maximum loss in this trading is an investor loosing all the money in the trading account.


In binary options, there are no spreads, swap or commissions when trading. While in Forex trading, an investor has to consider the spreads and swap, and any commissions.

Each broker in binary options determines the maximum and minimum trading size for their clients. Sometimes the maximum amount can be up to $5000 and the minimum up to $5 per trade. While in Forex trading, brokers allow their clients to trade smaller lots such as 1000 units of the base currency in the trade. They also determine the maximum trading amount.


Binary options are available in five types which an investor can choose to trade. They include; 60 seconds option, high/low, touch/No touch option, option builder and boundary option. In Forex trading, there are a variety of order types. The most essential ones are the market orders of buying/selling. Other advanced orders include stop, OCO, trailing stop, limit, hedge orders among others. Therefore, investors must be able to lay out the factors of binary options vs Forex trading in order to choose an effective investment.

Share this post

Link to post
Share on other sites

I really like your article......I edited a bit in order to avoid the advertising you were making and I am telling you this because, again, I really like the topic...


I said on a different thread that regardless how controversial binary options are, they offer a trader (a diversified trader) discipline in the sense that if your option is not expiring in the money, there you go, your stop loss is hit........and in a binary option trade there's no way out........whereas in foreigh exchange you can change your mind and hope/pray/wish for something to happen when chances are close to zero.....


again, please develop the thread without advertising and this would be a hell of a thread



Share this post

Link to post
Share on other sites

Hi there,


How is the payout modeled?


You say these options are standardized and traded on exchanges - what exchanges and where is the spec please?


Any losses and profits in Forex trading can be managed with the regulations to limit or stop orders. Actually, the maximum loss in this trading is an investor loosing all the money in the trading account.

Please, get a grip and show some respect to your audience here. I don't think anyone here is going to trade FOREX with such extreme leverage that one trade would wipe them out. With binary options you could still bet your entire account on one trade and lose it all.


The R/R you mention does not interest me as it is less than 1:1 - and you said 1:0.8 was a maximum!


I've dabbled with barriers before and found the added element of time to my trade idea tricky. The better payouts were in the 2-4 week area. I found it a lot harder than trading the futures/spot markets.


Hopefully some of the more experienced chaps can chime in (zdo?).


With kind regards,


Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Similar Content

    • By edakad
      Firebird is an indicator to identify the price spikes in the market. Firebird indicator first calculates a 10-period moving average, then shifts this moving average a certain percentage above and below the 10-period moving average. The shifted averages are drawn on chart as the red and green line. When price touches these lines, price spike is identified. Usually after a price spike, the trend reverses for some time. The indicator can be used to take advantage of this price behaviors. In daily chart usually the 10 period MA is shifted by 2 percent to form the price bands. On lower time frames like Hourly, Four Hour a smaller percentage price shift is used like 0.5% . The important consideration here is most of the price bars must be contained within the upper and lower bands.
      When price reaches above the upper red band, a sell position is opened. When price reaches the lower green band, buy position is opened. Trades can be managed with proper stop loss and take profit. In the picture, Firebird indicator is attached to daily chart of EUR/USD with 2% shift on MA. Note that almost all price bars are within the price bands. And when price extends beyond these bands, price trend reverses and comes back into the bands.

    • By jason.lee
      How to reduce eroding Forex slippages? Slippage is more likely to occur in times of higher volatility (perhaps due to market events) and it makes a market order at a specific price impossible to execute. Such times are when large orders are executed, when market orders are used and when there is not enough interest at the desired price level to keep the expected trade price. 

      Slippage is neither negative or positive movements, it is simply the difference between the expected purchase price and actual executed price. Since the corresponding securities are bought and sold at the most favorable price available, an order can result differently. In this situation, most forex dealers will execute the trade at the next best price.  In forex world, the market prices changes fast and the slippage happens in times of delay between the order placed and its completion. 

      Slippage is the difference between the expected filled price of a trade and the actual price filled. In other words, when your trade is executed at a worse price than requested, so it is “slipping” from the original order price. It happens between the time that a trader enters the trade and the time the trade is made. It can happen to everyone in any given trading market; stock, currency, or commodity.

      This may be caused by an ineffective broker, increased liquidity and fast market. The forex market is very liquid and there are limited amounts of slippage.

      Share your Idea Please
    • By jason.lee
      Does it mean that you are an expert just because you make a lot of profit? The amount of profit cannot be used to measure the value of a trader. Yes, you must be doing something right if you are making a frequent profit. However, that does not determine if you are an expert or not just by your profit. This is quite a common misunderstanding in the forex industry.
      Making a large profit is only one side of the forex market. Majority of forex traders tend to lose most of the time after they have experienced profit. But why?
      So many traders fall into a fantasy land where they make an endless amount of money at the beginning. Many beginner traders tend to gain profit at the start not knowing the importance of technical analysis of the market.
      The experts on the other hand who stayed became wealthy and stayed that way, continue gaining profit, are all knowledgeable when it comes to the basics. Experts have dialed many ways to control their minds to be set right to be a trader.
      Understanding of the market is a must know anyway. Expert traders wait patiently until the right opportunity comes. Opportunity comes to everyone.
      What differentiates the experts and the beginners is that experts know when the opportunity has come and knows to take advantage of it. Making profit by luck is possible, and yes luck is also very important. But can you profit with luck every time?
      How an expert trader is determined is not by how much the person gained, it’s about the precision and the frequency of results. Profit can’t be maintained by luck. It is maintained and is a result of precision and strategical execution. You shouldn’t worry because you’re not gaining any profit right now.
      You should be building your skill sets to be a better trader by experiencing many trading situations of losses and wins. If you invest in your time to improve, your results are guaranteed to increase more frequently and will become more stable.
    • By George_wilson8
      I invested 60% of my retirement payment on Coin Bull and Paperex with the mindset of getting it multiplied and enjoying a better retirement life. It was sweet and smooth from the start, withdrawals were easy and consistent until it gets to a point I started to be denied withdrawals and that was how I lost all money, I couldn't get my investment amount back not talk of the bonuses. I contacted several lawyers but it was all waste of time and money, they couldn't render an inch of help. God so good to my old self and family, I later met with a certified binary options recovery expert that helped me recover my money within 5days from the brokers(Coin Bull), it was worth it, he was able to retrieve my funds. If you have found yourself in same situation as me you can contact the expert on '' Hacknet1seven1( A T)p r o t o n m a i l ( d o t c o m )" also he can render any other desired hacking services, I can assure he would be able to help you just as he helped me, you can give him a try if you don't mind. Binary options brokers shouldn't get away with this.
  • Topics

  • Posts

    • Ethereum Price Prediction: Long-term (ETH) Value Forecast – July 13     ETH/USD Long-term Trend: Bearish ·         Resistance Levels: $240, $260, $280 ·         Support Levels: $220, $200, $180   On June 26, the ETH market reached its peak price of $340 price level. The bulls tested the $340 price level and were resisted. The market fell to the support of the 12-day EMA to commence a range bound move above the EMAs but below the $320 resistance level. The bulls were facing another resistance at the $320 price level after the overhead resistance.   On July 9, the bulls were resisted at the $320 price level and the ETH market commenced a downward correction. The bears broke the 12-day EMA and the 26-day EMA as the downtrend continues. The ETH price has fallen into the previous range bound zone of $220 and $280. The crypto may likely revisit the previous low of $220 price level.   A trend line has been drawn to determine the duration of the bearish trend. A bearish trend is ongoing if the trend line is unbroken. A bearish trend is said to be terminated if price breaks the trend line and another candlestick closes on the opposite of it. Meanwhile, the MACD line and the signal line are above the zero line which indicates a buy signal.     The views and opinions expressed here do not reflect that of BitcoinExchangeGuide.com and do not constitute financial advice. Always do your own research.                                                                                                                                        Source: www.bitcoinexchangeguide.com     
    • I have written a Trading System simmilar to Elliottwaves, for all markets. Here are the files. Free to try till 01/2020 TRADING SYSTEME.zip
    • Learn both fundamental analysis and technical analysis.  I use the fundamentals to tell me what to buy then I use the charts to tell me where my entry and exit points are
    • Honestly, stay away from cryptos!! They are not regulated. The FCA decided they were gambling, not trading. Are you really ready to lose your money?
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.