(on the flip side, your reward is limited as well). If you think that pair will be at or below.2550, you buy a put option. With the right strategy, you can use Forex binary options to great effect with less practice than mastering spot Forex trading. Its possible to lose quite a bit, depending on when you exit a position, and how many pips have been lost.
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Binary options are option contracts with fixed risks and fixed rewards. Thus, Binary Options trading is a winner on our competition of Binary Options vs Forex trading. However, at the moment spot Forex trading is more flexible in comparison with Binary Options trading. Traders are shown up front the value of their earnings if their predictions are right. This flexibility has both advantages and disadvantages.
Youre stuck until the expiration. You only have to cover the spread for your cost, and with spreads quite small these days, its possible to trade on the spot Forex market for a relatively low price.