The Differences between Binary Options and Forex:
1- Margin
Binary Options: No margin but still make a large return on your investment
Forex: There are margins, like: 1:100, 1:200, 1:500... to make a large return on your investment
2- Payouts and Losses
Binary Options: Before trading, you know your maximum payout such as 70%, 82%, 200%, 500%...etc. You can minimize your loss by clicking "sold" or "loss back" which are provided by brokers.
Forex: You don't know you maximum profit you can make on a trade. You can control your loss by using stop loss. The Maximum Loss with Forex may be all of the money in you trading account.
3- Closing a Position
Binary Options: Before you make trade, you have to select when you want the option to expire (Ex: 60s, 15mns, 1h, 1week from now...etc.
Forex: You can close your position anytime the market opens.
4- Orders Types
Binary Options: There are 5 orders types, like: Regular, Long Term, 60 Seconds, One Touch, and Pairs. (APBinary)
Forex: The most important ones are the market (Buy/Sell) orders. Also, there are more advanced orders such as: Limit, Stop, OCO, Trailing Stop, Hedge orders, and others.
5- Trade Size
Binary Options: As low as $5 per trade and the maximum can be up to $1000 or $5000 or more.
Forex: Example of EUR/USD with Leverage 1:100, Micro lots is 1000 units ~$1.000; a Standard lot ~$100.000/lot. The maximum can be up to 100 lots~$10.000.000
6- Trading Costs
Binary Options: No Spread, Rollover/Swap or Commission
Forex: Spread, Rollover/Swap and Commission are included.
1- Margin Binary Options: No margin but still make a large return on your investmentForex: There are margins, like: 1:100, 1:200, 1:500... to make a large return on your investment
2- Payouts and Losses
Binary Options: Before trading, you know your maximum payout such as 70%, 82%, 200%, 500%...etc. You can minimize your loss by clicking "sold" or "loss back" which are provided by brokers.
Forex: You don't know you maximum profit you can make on a trade. You can control your loss by using stop loss. The Maximum Loss with Forex may be all of the money in you trading account.
3- Closing a Position
Binary Options: Before you make trade, you have to select when you want the option to expire (Ex: 60s, 15mns, 1h, 1week from now...etc.
Forex: You can close your position anytime the market opens.
4- Orders Types
Binary Options: There are 5 orders types, like: Regular, Long Term, 60 Seconds, One Touch, and Pairs. (APBinary)
Forex: The most important ones are the market (Buy/Sell) orders. Also, there are more advanced orders such as: Limit, Stop, OCO, Trailing Stop, Hedge orders, and others.
5- Trade Size
Binary Options: As low as $5 per trade and the maximum can be up to $1000 or $5000 or more.
Forex: Example of EUR/USD with Leverage 1:100, Micro lots is 1000 units ~$1.000; a Standard lot ~$100.000/lot. The maximum can be up to 100 lots~$10.000.000
6- Trading Costs
Binary Options: No Spread, Rollover/Swap or Commission
Forex: Spread, Rollover/Swap and Commission are included.
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