What is the difference between binary options and forex?
Forex trading is foreign exchange trading. Many traders do this for large organizations and the daily trading volume is several trillion dollars.
Binary options essentially place a bet on whether the price of an underlying asset will go up or down in a short amount of time (sometimes in less than a minute). It's not much better than gambling. It's fun though. I guarantee that you will lose money.
Binary options is nothing more than gambling at its best - cheating people for lack of regulation. So there is a lot of crap and I would recommend staying away from that. If you think there is something legitimate, ask them to provide a verified report.
Binary options are put (short) or call (long). The option is derived from the underlying instrument traded, but you have a set time limit (of your choice) to place your order and when that time limit expires to ensure that the price follows your chosen option (P or C). If yes, then you have made money, if not, you will lose the bet. These meticulous brokers set prices and spreads.
What is the difference between binary options and forex allows you to learn how to trade, not gamble. Education and practice are key as there are so many strategies to master. Unlike a binary option, where there is a time limit (on FX), it is not, and if you want to hold a position for a long time.
Many FX brokers are also regulated.
You trade FX (currencies) globally depending on your broker. There are trillions of dollars a day in foreign exchange trading all over the world, so liquidity is always there.
A currency trader can scalp - scale at our scale.
The final option is trading on the foreign exchange market.
