Forex traders and those who want to trade in forex in the future will be amazed at how simple, easy and stress free trading forex can be when one utilizes the binary option platform to place the trades. This brand new revolutionary form of trading is a wonderful option for traders who are already familiar with conventional currency trading and not much more challenging for the beginners that want to break into the wonderful world of trading in Foreign Exchange markets.
Understanding Forex Binary Options Trading
Trading with forex binary options is one of the several choices a trader has available with binary options trading. Like conventional forex trading a trader is trading currency pairs. But with conventional forex a larger investment is required.Yes, a trader will need a good manual system that is designed especially for this type of binary option trading and it is always advisable for a trader to practice for some time using free demo accounts with a new system even if he or she has some prior experience. This type of trading is relatively new because binary option trading has only been available for a few years and to say the truth, it has just gained a substantial amount of popularity in the last one year or so.
A trader might wonder why it is so easy and non-stressful. Well for one, there is no more stop losses for traders to worry about because there are none. Next, there is no need for traders to watch their trade since it will automatically expire on the binary option platform according to the expiry time they chose when they placed the trade. A trader can even close down his computer after he has placed his trade and if it expires one 9th of a pip below or above the target, depending on which direction he traded, it expired "in the money" and he will win.
It is very simple to trade forex on the binary option platform. Traders choose their expiry time. Most platforms have from one minute, fifteen minutes, thirty minutes and one hour or more. Next traders choose their direction which can be designated as "put" or "call" and depending on the particular platform, some call it "low" or "high" and some simply "down" or "up". Then the amount a person is trading and clicks the button to make the trade. That is it and depending on the forex pair a trader is trading, the outcome can be as high as 85% of the trade amount. A person can never lose more than his trade amount and some platforms even give traders back 5% or 10% back if they lose the trade.
Some people might think that this is just gambling. Well it could be if a trader has no strategy or method or money management system to trade by. The same can apply to trading forex if a trader just places his trades blindly without a strategy or method. Never do that as you are sure to blow your account within a very short time.
Also the forex binary options broker takes into account the price level at the expiry time of the trade an investor has determined, or in other words there is no leverage. This means that if a trade moves against the investor prior to expiry time he still has time to make his money back and will come out with a winning trade.
With conventional forex trading if a trade goes as little as five percent against the trader the forex trading platform closes all his positions automatically leaving him no chance of making his money back.
Another benefit of forex binary options is that there are no any requotes and the spreads do not widen like they normally do in traditional forex trading.
In summary, you need to get a good manual system that is specifically designed for forex binary options. Also, there is no need of paying an arm and a leg for one, do your due diligence and you will get a very reasonably priced manual system and method for trading forex on the binary option platform. An excellent system will show you how to set up your Meta Trader platform in order to generate your trades and anything else you ought to know to get in on this great new way of trading.
This post is provided by Thebinaryoptionsbroker.com, a trading education site and Best Forex Binary Options Brokers reviews.