Skip to main content

Posts

Showing posts with the label margins

Binary Options vs Forex

Before you start trading it is important that you are aware of the differences between binary options vs forex, so that you are able to choose the trading method that suits your individual style and preference. Forex trading is speculating the value of one currency with the other.  The currencies are always traded in pairs. In binary options the trader predicts whether the price of the underlying asset increases or decreases over a period of time. Margin Margin can be used to trade in forex. Brokers decide the margin that can be used in trading.  It can be 1:200, 1:400 or 1:500. This allows traders to increase the investment that they can make in the market so that they are able to make a larger trade and profit even with a small account.  In binary options margin is not used for trading. It is still an attractive option for traders as they may be able to make big profits. You never get a margin call in this trade. Payout and losses The maximum profit that y