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Making a comparison between Forex trading and binary trading is not easy as they both have their own advantages over the other but here are some of the main differences:
Binary Options vs. Options , if you are new to trading then you may be slightly confused. What is a binary option and how is it different from a traditional ...
I personally use six different brokers for trading and recommend all serious traders to open a few accounts to different brokers in order to have a good variety of assets.
To get started trading you first need a broker account. Pick one from the recommended brokers list , where only brokers that have shown themselves to be trustworthy are included. The top broker has been selected as the best choice for most traders.
The trader buys a PUT option if he/she believes the market is going lower. If the market price is lower than the strike price at the expiry, the trader wins the bet.
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After analyzing a specific asset, oil for example, you believe the price of oil will be above $45 within an allotted time frame. Of course, your understanding is based on a thorough analysis of the price of oil. If you think the price of oil will go up, you purchase a CALL option. If you think the price of oil will go down, you buy a PUT option.
To trade binary options you don’t have to buy the asset itself — you buy the option contract, and it is much cheaper. For instance, you can buy an option for stocks of a well-known company for only 50 USD. And if you’d like to become an actual shareholder of this company, you’d have to pay more than $500 for every stock. In other words, binary options trading allows you to earn profit in ways that used to be impossible.
Binary options are “all-or-nothing” in design. You either win or lose. There is no middle ground. Binary means 1 or 2. One or the other.
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