Jumat, 17 Februari 2012

What are Forex Binary Options?

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What are Forex Binary Options?

anyoption provides you with the ability to trade forex binary options, also known as forex options. They are one of several types of options that customers are able to trade at anyoption. The basis of trading is the same as with the other assets that we offer, such as stocks, commodities and indices.

The process of trading forex binary options with us is quite simple: you can place either a Call Option if you expect the asset to expire above the current level at the expiry time, or a Put Option if you expect your option to expire below the current level at the expiry time. If the option goes in your favor, then the trade would be in-the-money. If the asset goes against you, then the trade would be out-of the-money.

Forex binary options refers to currency pairs, such as EUR/USD, GBP/USD or USD/JPY, and have great advantages at anyoption. For example, you can place a $100 Call Option on the USD/JPY at 95.6431. If by the end of the day, the pair closes at 95.6483, you would receive a 70% payout rate. This is amazing, considering that the option only has to go a fraction of a percent in your favor.
Forex Binary Options Trading vs. Traditional Forex Trading

Despite some similarities between traditional forex trading and forex binary options trading, the latter has many advantages over the former: With binary options trading, there is minimum risk, as the trader cannot lose more than the original investment. Actually, at anyoption, we guarantee that you receive 15% return of your initial investment, even if your option ends up being out-of-the-money. This is 1 distinctive advantage of trading at anyoption and with forex binary options in general.

High Returns

You only need to invest a small amount of money to make high profits, whereas with traditional forex trading, you need a much larger investment. For example, a $200 initial investment can give you a $340 return, which is an astounding profit of $140. At anyoption and with forex binary options in general, you can choose the expiry time from the outset. For example, from when you choose your parameters from the very beginning, you can pick the expiry time of either end-of-hour, end-of-day, end-of-week or end-of-month whatever suits you!

Protection from Leverage

The fact that with forex binary options, your investment is protected from leverage gives you a unique advantage. The thing people don't understand with traditional forex trading is that the leverage can work against you just as easily as it can work for you. This means that a small change in value of the EUR/USD currency cross for example could wipe out your investment. However, due to forex binary options traders not being exposed to leverage, even if the option goes against them prior to the expiry time, they have nothing to worry about.

No Commission, No Spread and No Experience Required

At anyoption, there is no commission and no spread. On the other hand, forex brokers tend to up the spread to compensate for claiming that a number of them charge no commission. What's more, learning about forex binary options is really quite simple, whereas the traditional forex market is very complex. As we have a user friendly platform, adapting to forex binary options or binary options trading in general will take you no time. In fact, no experience is required! If you want to take advantage of forex binary options trading now, then why not try the unique anyoption trading account. To learn more about trading at anyoption, please visit our blog.

This post is also available in: Spanish


One Response so far

  1. Andrea says:

    I am highly interested in trading Forex options but is confused between the two types i.e currency or stock trading. I wanted to know which trading option will help me to earn maximum and is having least amount of risk involved.
    trade binary options

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