The Binary Logic Free Course

What Is The Difference Between Forex and Binary Trading

Guys, In this post, I will be talking about the difference between forex and binary trading. Actually, the trading concept is almost the same. But there is a difference between forex and binary trading. So let’s know the differences.

Create a FREE Trading Account with $1000 Practice Money

The Difference Between Forex and Binary Trading

1. Expiry time:

The main difference between binary options trading and forex trading is the expiry time. In traditional forex trading, the expiry time is not fixed what we already know. We can close our trade whenever we want but in binary trading, we can not do this. We have to select an expiry time at the very beginning of a trade. Let’s elaborate, In forex trading, you can close the trade when you are comfortable to close it. But in binary trading, you have to select the expiry time before you place the trade.

For example, you want to place a “Call” trade with 5-minute expiry. In that case, you have to select the time at the very beginning. And you can not close the trade before the time expires. This is the main difference between forex and binary trading.

Create a FREE Trading Account with $1000 Practice Money

2. Spread:

Spread is a very interesting part. If you already know about forex trading, you may know that you can not make any profit just placing the trade because you have to reach the spread of the broker. Sometimes, the spread it 10-50 Mircopips. Let’s say, you have placed a Buy trade at 1.12230 and the spread is 20 micropipes. In that case, you will start making a profit after crossing 1.12250. That is little embarrassing sometimes. But in binary options trading, there is no such thing. 😀
If you place a “Call/Buy” trade at 1.12230. You will make money even if you can reach 1.12231 at the expiry time. Only 1 micro pip is enough. It is fun. Isn’t it?

So, you will get 70% return with only one micropipe positive market condition.

3. Return:

Return means that how much you will get at the expiry time of your trade. Basically in forex trading, you will get the return based on how many pips you have gained at the closing time. But in binary options trading, the return policy is much more interesting. You will get the desired amount at the expiry time if you can gain only 1 micro pip. No matter how many micro pips you have gained, But you will get the predefined return. It is the coolest part in binary options trading.

4. The risk of ruin:

What I mean by the risk of ruin is how much risk you will have while trading in binary and forex. It is the most important difference between forex and binary trading. Because in forex trading your account is risky if you don’t follow the stop loss rule. For example, if something unexpected happens in the market against your trade, your account can be ruined. It is possible in forex trading if you don’t set the stop loss.

But in binary, it is impossible to ruin your entire account whatever happens in the market. Even, if the market crash, Nothing will happen. You will lose only the selected amount. So nothing to worry in that case. If you think about the risk of ruin, I would suggest you go with binary options trading. Because if you follow proper money management, You will not lose your entire account quickly 🙂

If you would like to trade in binary options trading, don’t forget to check the free course page of The Binary Logic. You will be stunned for sure. I have combined my knowledge to give you the basic idea about binary trading.

Guys, I believe that you have got the detailed idea about the difference between forex and binary trading. Watch the video if you don’t like to read texts. 😀 If you have any more question, don’t forget to comment below. You will get the solution as soon as possible. I always encourage you to research before you invest.

Happy Trading!

About the author

Mr. Hasan

Mr. Hasan

Mr. Hasan is the founder of The Binary Logic and an online investor for more than five years. Mr. Hasan is an expert financial instruments trader. Over the past six years, he has made thousands of trades. He is a passionate IT freak and technology lover. Gaming and trading is his hobby.

Leave a Comment