Binary Options may be ideal as a trading strategy for Forex trading. The main advantages are related to the leverage factor to the risk / return and Momentum. The deadline is the most obvious difference between the conventional trading on Forex and Options Trading binary .
Forex Binary Options expire at the end of the hour, and pay a fixed return of 85% even if the price at maturity is only a fraction of a pip in our direction.
Binary Options do not use leverage, so you can not lose more than you bet. The maximum loss is already established at the time that you open a position.
Since the Binary Options Trading does not use the lever, the risk / reward is much greater during the Trade.
For example, using a Forex Breakout Strategy is a trade of $ 100 will generate a profit of $ 85 if the price of Option Binary end of even a fraction of a pip “in the right direction” at the end .. and this happens at the end of each hour.
These advantages are encountered when using a Forex trading strategy based on Momentum.
In the graph above, which is the currency pair GBP / JPY , a breakout triggers a violent movement of prices in one direction, but of unknown duration and size.
On the other hand, Binary Options offer just a trading office and are a great tool for trading Forex Strategies based on Momentum.
Until you can accurately predict the direction of the breakout, you can get 85% efficiency, even if the price moves a few pips above our price target.
This would require the use of high leverage in the conventional trading Forex, with an unparalleled risk / return.
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