Differences in Forex and Binary Options
Differences in Forex and Binary Options – At this time, We will explain the differences between Forex and Binary Options along with their respective strengths and weaknesses. As a world champion in trading, forex and binary options are not foreign things in the ears. Although Forex existed earlier, Binary users now from year to year began to have many enthusiasts and even competed with the number of Forex enthusiasts.
In the past, Binary users were not as much as Forex. Around 2016, Binary Options became popular in Indonesia. The first and most emerging platform brands in Indonesia are Olymptrade, Binomo, and Irontrade. But before that, Forex platforms did exist a lot since the 2000s and above without being able to call one by one the name of the broker.
Binary options are basically derivatives of Forex. Forex and Binary options have something in common, they both analyze the price of going down or going up. If our analysis is correct, then we profit, if wrong, then lose. In addition, the assets traded on Forex are the same as those in Binary.
Examples include trading currencies (currencies such as USD, EURO, JPY, CAD, etc.), Crypto Currency (digital currencies such as bitcoin, dash, etherum etc.), and Commodity (oil, gold, metals, etc.). Both of them take advantage of the current price whether in the future prices will rise or fall.
Some say trading on Forex is better than in Binary Options. But for binary users who often profit, it is actually binary options that are better than forex. Looking for a platform which is good between trading on forex and binary is always different opinions.
If you want to get relaxed but sure results, we can trade on Forex. But if you want to double the capital in a short time, then in binary is the place. All depends on the trader itself, like the results that are relaxed or fast but need extra energy.
The above are some similarities between Forex and Binary Options. Well, here I will present material about the Differences between Forex and Binary Options and their respective Strengths and Weaknesses.
Differences between Forex and Binary Options (Strengths and Weaknesses)
1. Forex does not have time to deal while Binary has an expiry time
When pressing the Buy or Sell button, Forex is not determined when to close a trade. We can close the trade whether it’s in a losing position or profit at any time according to our wishes. Whereas in binary we have a time agreement. If in the agreed period it turns out our analysis is right or wrong, then that is the end result without being contested.
2. Profit on Forex is slow but sure while Binary is fast but needs more Energy
As explained above, if we want to get relaxed results without constantly staring at the monitor screen, Forex is the choice. But if we want to get fast results or in a short time, it would be better if we use Binary Options. Binary provides an agreement on the fastest time generally 1 min but get ready energy and psychology will be drained.
3. Forex has spreads while Binary does not
One of the things that trades don’t really like is spread. Spread is once a fund cut per initial open position. Well, most of these are the advantages of brokers. Spreads in each pair on Forex vary depending on market violity. The higher the violity, the greater the spread.
As for if on the binary, the broker’s profit is not from the spread but rather from the presentation of the profit that has been determined by the broker itself, which is 80-90% of the amount per open position we are trading. The drawback, when we lose we lose 100% of the amount per open position, while when winning only gets the highest 90%.
4. The deposit process in Forex is longer than Binary
Whether what causes Binary is faster, according to my experience during trading on Forex and Binary, I compare and conclude that depositing at a Binary broker is faster than Forex. Once we enter the funds, the funds go directly to our balance.
Unlike Forex, when we make a deposit we have to wait 15 minutes or more, sometimes it can take days according to the broker’s working hours. If we make a deposit at night (not working hours) then we have to wait for the new day before the funds can appear in our balance. But for speed withdrawal both have the same time which is 30 minutes – days according to working hours.
5. At Forex it doesn’t have to be accurate while in Binary it must be accurate
When in a losing position (due to lack of analysis), on Forex we can trade trades or wait for trades to turn around to profit without time constraints. Whereas in binary, when in the condition of profit or loss, if the time of the agreement has expired, lose or profit our current position then that is the result.
Well, that was some important points about the Differences between Forex and Binary Options that need to be known by friends who are currently or will be trading on Forex or Binary Options. After reading the above article, friends can conclude themselves should trade on Forex or Binary Options. You can answer it yourself. So, hopefully, it’s useful!
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