This is my first post on this blog of mine called MY FOREX IDEAS. I want to start by thanking you for stopping by.
This article tells a little bit of my experience as a binary option trader and a forex trader. Although in subsequent posts, I will dropping my analysis on different pairs; currency, stock index and the rest of the CFDs.
Forex trading can be seen as buying one currency and selling the other. Here buying and selling is done simultaneously. Here a long term movement is considered. And profits or loses is calculated from price difference called pips.
Binary option trading works in a way the trader has two options: up or down, call or put as the case may be, according to different brokers and trading platforms. Here a short term or long term movement as desired by the trader is considered. The profit or loss is determined by whether price move towards the trader's direction with the allotted time for the trade position or against the trader's prediction respectively.
The difference between forex and binary option charts is that;
- Forex trading chart has bid and ask lines which form the spread. While on the other hand binary option trading chart do not have this feature.
- Forex trading chart has up to weekly time frames being a long term investment, while Binary option trading chart mostly ends at daily timeframe.
Now you have seen the difference between FOREX TRADING and BINARY OPTION TRADING.
In my experience as a binary option trader, I was getting to emotional with my one minute and five minutes trades. Some times, I decided to set the trade expiration from 15 minutes to 1 hour.
Coming to FOREX TRADING I have the freedom of setting my stop loss and decide whether to quit the trade or not. Well! To some people, trading Forex is more emotional than Binary option .
I discovered I was more emotional then (binary option trading) than now .(Forex trading).
Greed was on high level in my binary option trading days due to the desire to make money and become rich within a short time.
I hope you enjoyed this article, if you have any question concerning the difference between forex and binary option, you can drop it for me to answer in the comments section.
Thank you for reading, tipping and liking.
See you in my analytical posts.