Difference between Binary & forex trading

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 ?

Revealed: punter who lost £640,000 on binary trades | Business | The Times & The Sunday Times

can also happen with forex or any other trade
but I am missing the crux, still : difference between Binary & forex trading

It [I]can[/I], but the reality is that it’s much more [U]likely[/U] to, with binaries. For two main reasons …

(i) Binary options attract a higher proportion of people with a gambling mentality than forex in itself does;

(ii) With binary options, the odds are even more stacked against the newbie punter (excuse me, I mean of course “the aspiring trader”) because there’s a much bigger “house edge” to overcome.

My own feeling is that the two points above account for a significant part of the difference.

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.

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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.

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Everything is clear, thank you.

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.

It’s now too late to delete my post made here, so I’m simply editing it as the moderators have kindly removed the spammer I called out - thank you. :cool:

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.

Thinking of binary options? Read this

Why do I have the feeling that all your posts from march are don’t trade BO lmaoo

Because you haven’t read all my posts

You have that feeling because you’ve sensed (as anyone can) that Carlos has plenty of experience and knows what he’s talking about, and is one of the many serious traders here - just like myself - who mentions to recently-joined aspiring traders, whenever they ask, that trading binaries is a crazy and inappropriate way to start, and simply a method for handicapping their success-chances as much as possible.

That’s part of the value of a forum like this.

Plenty of experience is a completely subjective comment. Who is to say that we don’t have the same amount of experience? I’ve traded mutiple financial wheels. Stocks, futures, commodities, forex and recently binary options? like I mentioned if they are aspring traders educate them on what binarys are but you and him seem to have a biased opionions as if you lost the shirt off your backs from trading BO. If thats the case please share your experience with said traders so they can learn. Most of the comments are actually bringing a negatve sentiment to those who dabble in binarys. I would say people who dabble in binarys are the same who dabble in penny stocks a very small minority but at the end of the day people have made money and withdrawed that money.

Very true - but when the FBI even comment on Binary options, suggesting that it’s the biggest scam going then one has to consider what the majority of the ‘brokers’ are up to. The biggest red flag going, perhaps?

As posted on a previous thread - and if in doubt then feel free to check the home page here https://www.fbi.gov/

Carlos, Lexy and Jezz are not bringing a “negative sentiment” for the sake of it or trying to belittle your own experience. Their advice is coming from their many years of combined experience and it is given in an effort to try to give a new trader the best possible start particularly as their starting capital is quite often minimal. It is up to the individual whether to take the advice but nobody can question that it comes from “a good place”. Aside from the school it is the experience of other traders that most people come to Babypips for.

What the FBI recommends
“Ensure that the trading platform is a designated contract market by checking the Commodity Futures Trading Commission’s (CTFC) Designated Contract Markets website. Thousands of entities promote binary options trading in the U.S., but only two are currently authorized to do so by the CFTC.”

If you go with an overseas broker BO or FX you are doing so at your own perial. Let’s be serious now.

Also as I said before what they are doing is basically saying hey i have expeirnce and everything but BO i have never did it or tried it because they have no proof saying they have. But since we have so much expiernce in other finincail wheels we know what we are talking about. Like the FBI website said use a broker that is registered by the CFTC. Which is only 2. Now your saying those 2 are bucketshops also? Just as I mentioned before there are plenty of traders being scammed by overseas brokers in both forex and BO because they go with brokers that arent regulated. Please tell me im wrong? BO is now but I bet theres more forex bucketshops then BO ones.

This is a very good point about trading binaries.