Trading with forex binary options are one of the many choices you have available with trading in binaryoptions. Like traditional forex trading you are trading currency pairs. But with traditional forex a larger investment is needed.
Lets say you put about a $300 dollar investment in to a currency pair and if you guessed right you would get a $510 dollar return.
Also a the trading platform takes into account the price level at the expiry time you have determined, or in other words there is no leverage. What that means is that if a trade moves against you prior to expiry time you still have time to make your money back and come out with a winning trade.
With traditional forex trading if a trade goes as little as 5% against you the forex trading platform closes all your positions automatically leaving you no chance to make your money back.
Another advantage of forex binary options is that there aren’t any requotes and the spreads don’t widen like they can with regular forex trading.
Normally those who do well at currency trading are in hedge funds or some other type of system with massive capital to burn. Their aim is to stomp on the smaller player the way we squished cockroaches when we were kids.
WithTrader711 forex binary options you don’t have to worry about getting gobbled up by the sharks. You can stay a small fish while starting off with practicing and then investing with small amounts of money.
Another advantage over conventional forex trading is that at expiry you can be less than one pip in the money and you come up with a potential 71% profit on the winning trade. A conventional trader would have to have a gain of close to 100 pips for the same result.
About the only downside to forex binary options is the fact that like all other binary options they can’t be executed before the expiry. Which means if you are in a winning trade before the expiry you run the risk of getting a losing trade even if you’re less than one pip out of the money.
But if you do have a losing trade you won’t get a margin call so you’ll have no more money to put into an account unless you want to for further trading.
All in all this are a great way to get into the forex market as compared to the conventional way.