Attached is a short video where two moves are played in parallel via the IQ Option platform, on the left are Binary Options and on the right is Forex. In order to show you their difference as realistically as possible, at the same time we opened positions for 1 minute and selected the EUR/USD market. Read more → How to trade on Binary Options
With Binary Options, the left side of the image, is clearly defined as the percentage of return on profit (76%) in case of an accurate prediction, which means if our prediction is correct after the option expires (in this case 1 minute, you set the expiration time in the upper right corner) where we played Lower, on the 10$ invested we will take profit 7.60$ or otherwise we lose the 10$ we invested. So, the smallest change in value downwards, in relation to our strike price from which we opened a position, will bring us a profit after the expiration of our option (1 minute) or a loss of investment in the event of a change in value upwards.
In Forex, on the right side of the image, you have the option to automatically close the position (Auto Close) when the value between EUR/USD reaches a certain level (here it is set + 50% -50%, which means that the position will close automatically when the value jumps or falls by 50% compared to the strike price from which the trade position is opened) and you have a Multiplier (here it is set to x100, it can be set to more or less as well, or popularly said 1/1 which means if the value jumps by 1 % in relation to the strike price from which we opened the position, we are then on the invested 10$ profit 0.10$ or 1% profit of 10$, or otherwise we are so much in deficit, provided that at that point we decide to close the trade).
In the end, on Binary Options we profited 7.60$ on the 10$ invested in 1 minute and on Forex we profited only 0.02$ on the 10$ invested in 1 minute.
Binary Options are more suitable for working on a daily basis in the sense that you make options that expire in a minute, do not require a lot of money to invest, in 1 minute you know whether you won or lost, potential profit and potential loss is clearly defined in advance, not necessary knowledge of the world economy – it is necessary to have a developed system that you will strictly adhere to, your strategies and well-adjusted charts. On Binary Options, patience and discipline are most important, because otherwise if you do not adhere to it, you are no different from a gambler in a casino, moreover, your work will then be reduced to pure gambling, which sooner or later has a negative outcome. Read more → Do you need to follow the world economy to work on Binary Options
Forex is mostly done for a longer period of time in the sense that trades do not close for hours and sometimes for days and weeks, of course depending on what the opportunities are at that moment for the selected market. In order to make a significant profit on Forex on a daily basis, you need a high deposit or at that moment major changes are taking place on the world economic scene, which directly affect the market you have chosen to trade and that you are maximally informed in which direction the same market will move. A successful Forex trader must monitor developments in the world economy constantly. The slightest omission in his information can cost him dearly.