I saw some videos on you tube that advocate binary tradings but dealing with currency pairs. so what is the difference between Binary & forex trading.? in forex trading , there are the same currency pairs acting , so where would binary trading come in ?
Simplistically, binary options have a specific expiry time, at which point the contract expires and you have either won something or lost your entire bet. With a forex position you decide when to close the position and the result is whatever is the difference between your entry price and exit price depending on whether you bought or sold.
Binary options traders does not hassle around mentioning stop losses, take profits, spreads, leverages etc, it only involves choosing a fixed time frame (called expiry) and predicting either the value of the underlying asset will go up or down within this specific time frame. If the price goes according to the prediction the traders gets an additional return on their investments usually ranges from 70 - 80 % approximately or either losses the amount he invested on the said position.
My personal thoughts on binary after trading for 2 years. Dont touch them. Very risky. I have made $200 $300 in half hour. But have wiped out entire account of $1,000 in 5 minuits. But knew nothing about charts etc etc. Traders may be a little on their own side not yours . If you like binary go for it. I have 2 accounts. But will most likly close both and put money into forex.
Also what the people failed to mention above is also the payout and risk are fixed no matter how much price goes against you. People forget that those who were on the wrong side of CHF that one day saw some of them being sued by their brokers and also brokers going bankrupt in some cases.