Forex or Binary Options for trading currencies?

By BinaryOptions On October 10, 2012 Under Binary Options - Advices & Tips

You also want to take advantage of opportunities arising from the current euro crisis to earn a little money on the markets? You’re absolutely right because the democratization of many financial products, intervene in foreign exchange markets has never been easier than today. You certainly have seen that it is possible to trade currencies with Forex Binary Options as with. So what better tool should focus in order to maximize its chances of winning?

1. Trading currencies on the Forex:

Forex is the best place for currency trader, you are in effect directly on the world market through your broker who is compensated with spreads (commissions) that you invoice your operations buying and selling. Thanks to the leverage you can with a relatively modest commit large sums markets: this is indeed the broker who lends you money over time to cover your position. The advantage is that you can multiply your winnings … but also your losses. To have attractive yields and maintain a good money management, you should invest heavily in Forex. Make money with forex is possible but it must be reasonable: investing 200 euros, you can not win 5000 euros per month! It is difficult to comment on the average rate of return but we can easily believe that a person who invests 10,000 euros in forex gains may withdraw from a height of 1000 euros per month (10% of its capital engaged).

2. Currency trader with Binary Options:

Currency trader with binary options is becoming increasingly common: in fact, all brokers offer binary options contracts based on foreign currencies: up / down, Touch / No Touch Option Range options are generally working on currencies and are as likely to make money. The downside of the currency trader with Binary Options on the supply generally quite limited: in fact, you will find that most pairs tradées, but they are often the ones who are the most volatile and which courses are most easy to predict. The advantage lies in the rates of return: a successful bet on Binary Options is often between 70% and 85% gains possible, much more than in the Forex.

In both cases, the strategies of position on the market must meet the same requirements: they must think its portfolio manage effectively without taking too many risks. In order to have beautiful yields, risks are a bit higher but in general if you decide to take a position on the currency markets with binary options. If you have a small starting capital, so you turn to first binary options. In contrast, with a larger initial capital, the Forex may be the most appropriate for you.

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