What are Forex Binary Options?
Forex binary options are options that simplify complex forex market allowing traders to reduce their exposure to volatile currency markets. With binary options, a trader can capitalize on the essential idea of forex trading without the complicated investment structure.
Forex binary options are binary options that use a forex paring as its asset. For example, you can invest in a binary option with the underlying asset being the USD/GBP. While binary options in general encompass a variety of asset types, forex binary options deal only with binary options that focus on currency pairings.
Gone are pips, cross-rates, leads, lags, spreads and all the other forex trading terminology that takes days or weeks to learn. Forex binary options are the distilled essence of what forex trading is: will one currency strengthen or weaken in comparison to another?
By trading in options, you are actually trading in the tried and true core of the global forex markets. Our Binary Options section gives you all basic information about forex trading as related to binary options that you will need to succeed.
Forex binary options – can I earn a profit?
Earning a profit with binary options by investing in forex pairs is simple and very lucrative. Binary options rose to prominence because traders could invest in forex pairs with high returns but much lower risk. Aside from the lower risk, binary options offer forex traders the possibility to know in advance the risks and rewards associated with forex investments. This advantage has created a great migration from the forex world to binary options investments by traders looking to know and understand each leg of their investment.
Making a profit with binary options by investing in forex pairs is simple and very lucrative. Binary options rose to prominence because traders could trade forex pairs with high returns and reduced risk. Aside from the lower risk, forex binary trading offers traders the possibility to know in advance the risks and potential profits associated with forex trades. This advantage has created a great migration from the forex world to binary options trading by traders looking to know and understand each leg of their investment.
Binary options are unlike traditional forex trading where you may be leveraged many times more than your original investment amount, leading to possibly catastrophic drawdowns that eliminate your entire portfolio. By trading with forex binary options, you know the exact amount of your risk before you purchase the option therefore eliminating the extreme, yet typical, risk of traditional forex trading. Read more in the Binary Trading section.
Is binary option trading restricted only to forex?
While binary option trading is very profitable for the Forex markets, you can trade binary options on a number of asset types, not only forex. With binary options you can trade a variety of asset types, including: commodities, stocks, and indices.
Binary options have done for these asset types what it has done for forex: free the investor from unspecified risk while informing the investor of the reward if his/her investment pays out.
Is there any educational material on how to trade forex binary options?
Trading forex binary options is no different than trading any other type of binary option. www.Rocketoption.com provides an exhaustive binary options education center designed for you to learn the best and most effective tools for trading binary options. To view the education center, please click here.