This is most important, the reward to risk ratio on Binaries is FAR FAR superior than Sot Forex. You can buy your typical binary option for $20 per contract (and some you can buy for $5!) This means if you win, you gain 5X your investment, or what you risked! ($20 x 5 = $100) To do this on a Spot Forex Position you would have to travel into positive territory that is five times your stop loss! This rarely happens because the Forex market is like a whipping dragon, and it's hard to tell when a reversal is in progress. Most Spot Forex Traders that I know usually only have a take profit that is around the equivalent of their stop loss. This means that a lot of Spot Forex traders are only gaining what they risk.
You can’t get stopped out in Binary Forex Options. You’ll sleep better at night not having to worry about whether or not your position is going to get stopped out, despite the fact that price is ultimately going in the direction that you thought it was! (You can get timed out, of course, but when you consider there are WEEKLY Binary Forex Options, it's really not a problem.)
There is no sneaky broker problems like in Spot Forex. You don’t have to worry about requotes or widening spreads with Binary Forex Options. And you just don’t have to worry about stop hunting in general.
You can Hedge with a single account with Binaries Forex Options. And because your pay out is so much higher than what you invest/risk, hedging makes perfect sense with Binary Forex Options. Unlike Spot Forex, where the risk to reward ratio is relatively low. If you buy a binary contract for $25 and sell an opposing Binary contract for $25, the payout is $75 even after your losing side fails!
Binary Forex options trading allows you to limit risk and see profit in little as one hour. Here we'll discuss what Forex binary options are, how they are used and which strategies you can use to profit.
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