Trading forex or Binary Options. What's the difference?

by Terry B. Burchtree Partners

Hi Terry B. here:

Are you constantly surfing the internet looking for a forex trading strategys? Are you confused as to what course to start with? When you want to get involved with Forex trading, Or binary Options you have to figure out approximately how much money you would like to commit to trading, and then find a low cost course which will educate you to get started in the right path to success.

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If you want to get started in trading really soon, one way is to buy a course online that teaches effective methods of trading, courses that gives you a high probability of placing a successful trade. Then, you need to study and test the method on a demo trading account until you are profitable. I find that for me I prefer Trading Binary Options. They are easier to understand. You just chose if the stock is moving up or down. You can make smaller trades. Less losses.

Binary options trading platform (also called binary options web-site) is a web-based, over-the-counter, real-time trading arena, which offers nonprofessional investors a way to profit from correct, short term predictions of some underlying asset (e.g., stock, commodity, currency, index) price movement by buying binary options on that asset. Binary options platforms have been growing rapidly since mid-2008. It is estimated that around 90 such platforms (including white label products) have been in operation as of January 2012.

The user-friendly-commission free platforms offer standardized short term binary options with a pre-determined profit/loss, that cannot be liquidated (buy or sell to close) before expiry. These binary option platforms offer options on some 70 underlying assets, and a profit scenario of 61% to 85% on options that expire in the money and also weekend trading that offers payouts as high as up to 400%.[1]

Examples of binary option trades:

A trader believes that McDonald’s stock (NYSE:MCD) will close above the current (spot) price of $74.93 by the end of the hour. The trader can invest $100 in McDonald’s binary call option on that outcome. If his prediction is correct his payout is $170 (70% profit). If he is incorrect and the stock closes below the strike price he loses 85% of his investment (gets a rebate of $15).

Another common form of binary option that is traded is a touch/no-touch, also called one-touch binary option. In one-touch binary option, if the price of Google's stock (NASDAQ:GOOG) is at $495 and a trader predicts that the stock will "touch" the $500 mark during the trading period he can buy a one-touch option. Once the stock's value "touches" the $500 mark, the trader would immediately earn a 60%-70% gain. If the stock doesn't touch the predicted range by the end of the trading period, the trader looses 85% to 100% of the investment.

Here is the one I use:

Here you can find a home trading course that has customer support, the better. They can guide you in starting your demo account and even in a live account. After you decide what you want to do, it's time to make your trade. Some brokers allow you to right click right on the chart and make your trade, while others have buttons that say buy or sell. Make your appropriate choice and prepare for a new screen to come up. Different brokers have various screens, but they all say generally the same type of thing.

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Here are two things you might want to remember:

There are many methods out there, and some are easy to understand, others take time to get hold of. Acquiring as much information as possible and finding your "sweet spot" will save you time in your starting demo account, and saving you money.

"Practice makes perfect" .Please don't start into the market with real money until you are confident and totally comfortable using the trading method you chose to use.

It is suicide kind of way of losing all of your money is to jump into the market too soon, before really testing a trading method. That is what the demo account is for.

As traders, the only way to test a trading method is to use it. Therefore, it is a must to write down your plan or method for finding a trade, and stick to it. Just like anything we do in life. Proper practice will make you able to enter the markets with confidence and will ensure you dont lose your ALL your money.

These preparation makes investing work in your favor.

Things to look for in a Forex Training Course:

Make sure it is from a reliable trading education source. One of the best there is nowadays is getting an education from a veteran who has done great in trading.

You can also join a Group here is one I use

Forex Trading | APSense Group

Take your time. Practice the concepts over and over again in a demo account before jumping into real trading.

For more info click here:

Happy Trading!!!

Terry B.