Forex VS Optios! The Great Battle!
Forex and Options Are not the Same!
What are differences between them? This question bother most people, because forex and options are quite similar for the first sight, and it's quite tough to find distinctions of each. Forex left bad memories and unsatisfied hopes for some. It's not surprising, because trading there is very difficult, and many psychological problems appear. Though, not for options.
We are to figure out all differences.
You trade with assets at forex - buying and selling currency. And defining the trend is only half the job. You must think when to open the order, when to close it, where to set StopLosses and TakeProfits.
While trading with options, all you should know - is to make choice about the direction of the price movement. Nothing more you need: order timeframe is already set up, and no StopLosses here! This is the essential difference between forex and options.
Option Exchange Features!
- Trading can be very fast - in contrast to forex. At forex, you have to wait at least for three hours, and only then close the order. Most traders keep it open the whole day or even more. Working with options, you can choose time to gain maximum profits by minimal time. If desired, you may buy a 15-seconds option. Such trading is by far more convenient. Firstly, you don't panic - no time for that! Traders will agree that when sitting in front of the chart for too long, you can't help but turn nervous and make fatal mistakes. Secondly, you don't have to spend much time looking at the chart, you need just a couple of hours of real trading. For this time, you may earn as much as a forex trader working the whole day.
- One of the most important features of options are fixed risks. You can't waste your deposit because of an abrupt strong market movement opposite to you - you won't lose more than option's cost. It can often happen that a forex trader has opened an order, and forgot about the StopLoss. Later, he enters the terminal and discovers the empty account - price's gone in opposite direction affected by the news. It can't occur with options. There, placing a bet, you always know your potential losses and profits, controlling your risks.
- Most binary options brokers have no spread - fee for order opening. Thus, it increases your profits, though, not too much.
- Binary options brokers offer bonuses and promotions more often than forex colleagues. Some of them run contests with fair prizes, others give extra money for solid top-ups, others offer partnership opportunities.
- As I've already mentioned, trading with options is easier than forex. No strange operations, complicated trading systems and indicators. Make your choice, place your fixed bet and gain!
- Nowadays, brokers offer a wide range of trading tools. Nobody can tell about all kinds of options in a single article, so any trader can choose the best for them. Some will feel good with binary options, others - with pairs, "one-touch options", etc.
- Your profits don't depend on market movements, the main point is when chart moves at least by 1 point - then you gain. Forex traders can agree that it often occurs when a trader has correctly defined the trend, but the amount of movement didn't cover even the spread. You can forget about this, working with options, as you gain profits regardless of the up/down movement extent.
You shouldn't think options are always better than forex. Actually, forex has its own advantages I am going to tell about. There, you can use different indicators, make long-term orders, engaging fundamental analysis.
Moreover, you'll be able to gain much from extended price movements with a right forecast, etc. But I recommend forex only to professional traders, because newbies waste their deposits due to lack of knowledge. Though, even pros often leave forex for the options exchange - that's really more convenient there.
So, what to choose: forex or the options exchange? It's up to you and your preferences. As for me, I like options' convenience and promptness - I don't spend more than 2 hours there. But some time ago, I was successfully trading at forex - that has its advantages, especially for pros.
I hope you will make your right choice.