Difference Between Forex and Binary Trading

In this post, I will discuss the difference between forex and binary trading. The trading concept is almost the same. But there is a difference between forex and binary trading. So let’s know the differences.

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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 we can not do this in binary trading. We have to select an expiry time at the 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. It is the main difference between forex and binary trading.

2. Spread:

Spread is an exciting 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 broker’s spread. Sometimes, they 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 a 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 expiry. Only one micro pip is enough, and itΒ is fun. Isn’t it?

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

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3. Return:

Return means 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 enjoyable. You will get the desired amount at the expiry time to gain only one micro pip.

You will get the predefined return no matter how many micro pips you have gained. It is the coolest part of binary options trading.

4. The risk of ruin:

I mean by the risk of ruin is how much risk you will have while trading in binary and forex. It is the most crucial 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 about in that case.

If you think about the risk of ruin, I suggest you go with binary options trading. Because if you follow proper money management, You will not lose your entire account quickly πŸ™‚

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, and I have combined my knowledge to give you a basic idea about binary trading.

Guys, you have a clear idea about the difference between forex and binary trading. Watch the video if you don’t like to read texts. πŸ˜€ If you have any more questions, 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!

Mr. Hasan

Mr. Hasan

Mr. Hasan has been an online trader since 2015. He has seven years of experience trading financial instruments such as binary options, forex, crypto, and digital options. He has created this website to share his knowledge of options trading so you can avoid the same mistakes that he had made. In my years of experience, He has learned a lot about trading successfully. He had also learned what not to do, and He wants to share that knowledge with you so you can avoid the same pitfalls that he did. To know more, visit the about page.

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