For example: The current price of EUR/USD is 1.30850 and you think the price will increase in the future. You buy 1 lot of EUR/USD and wait for the price to increase to the point where you want to close the trade and realize the profit you want.Binary Options definition: When trading Binary Options you only have to predict if the price of an asset (for example currency pair or stock) will increase or decrease from its current price over a certain period of time. For example: The current price of EUR/USD is 1.30850 and you think the price will be higher in the next hour. So you place a Call option on EUR/USD and wait to see its price 1 hour from now. If your prediction is right you can make a profit of 80 of your investment.Forex: You can use margin to trade Forex. The maximum margin is determined by each broker, and sometimes can be up to 1:200 or 1:500. Margin allows you to increase your investment capital so you can make a larger trade and make a larger profit if your trade is a winning one.Binary Options: Margin is not used when trading Binary Options. You can still make a large return on your investment (up to 80 or sometimes 400), so Binary Options are still very attractive for traders. The good news is that you can never get a margin call.Forex: With Forex you never know what is the maximum profit you can make on a trade. You can set a limit or stop order so that you can be guaranteed a certain percentage profit if the limit or stop is executed. The losses in Forex can be managed with limit/stop orders, the same way profits are managed. The maximum loss with Forex may be all of the money in your trading account.Binary Options: Before you make your trade you will know exactly what is the payout and loss return percentage that you will get for the particular option, when it expires. Some brokers offer payouts up to 80 or sometimes 400 depending on the option traded. This means that if you invest 500 on an option and the payout is 80, you will make 400 profit if the option is a winning one. Some brokers dont offer loss back, which means that if your option trade is a losing one, you will lose the amount you invested in the trade, but not more.Binary Options: Before you make your trade you have to select when you want the option to expire (example: 1 hour or 1 week from now) at the expiry time your trade will close automatically. The broker offers you different types of options with predetermined expiry times. Some brokers allow you to close your trade early, but you will exit your option at a percentage of the expected return. The early closure option is not offered by all brokers, and might not be available during the whole time the trade is active. Another important point to mention is that some brokers allow traders to delay the expiry time, to the next expiry time. This is called Rollover and the traders will need to increase their investment by a certain percentage, sometimes 30 in order to be able to do this.Good very good and fits the theory (derivatives). But it is really a different ball game. I think it is also hard ball and you need to be fairly skilled in assessing direction and timing trades to succeed the same thing that has many traders going belly up routinely in the Forex. But I like the sound of it. Also not sure if one can combine that trading the Forex.With Forex, however, when you place the order there are many things that can change. Not only the time is passing but brokers can widen the spread, the execution on closing time might vary due to slippage, etc. So even, if your prediction is right the broker still can play.Got me into researching more of this kind of trading, there is really not as much regulation for these brokers as I would like and truth is, that it is not like the 50-50 coin toss analogy, you are at disadvantage right from the start where you always get less reward than risk per trade, just my 2 cents.Peter, is right there is regulation for Binary Options but he is wrong about Banc De Binary being the first. SpotOption Ltd. was the first Binary Options provider to gain Cysec regulation, the majority of the webs binary platforms are powered by SpotOption and ones that are purely white labels are covered by SpotOption.If a Binary platform powered by SpotOption handles client money then they require Cysec regulation. Which allows them to operate throughout the European Union. It should also be noted that Cysec are the only MiFID regulatory body to consider Binary Options a financial instrument and it doesnt appear like the other bodies are going to change their mind any time soon.Ed, thanks for your comment. Actually, SPOTOption is platform provider and not retail broker. They work on White Label basis with brokers. In this sense, I would rather consider Banc De Binary is the first regulated binary options broker in terms of offering services to the end client. After all, regulations for professional and non-professional clients are different.BinaryOptionsThatSuck team primary goal is to provide a safe environment for all Binary Options traders, new or veteran, in which they can find honest unbiased reviews and information about different binary options brokers. If you are already a victim of a Binary Options Scam, the BOTS team will do anything they can to help resolving your issues.Binary Options that Suck is here to support the traders communitywe invite you to join us on this quest by sharing your information and experiences with others, right here. We will help you get started by providing information about the Binary Options Industry and different Brokers, but most importantly- helping you choose a Binary Options Broker that DOESNT SuckThe increasing growth of the highly profitable Binary Options Trading market becomes more and more attractive to traders, but being widely unregulated and relatively fresh makes the industry highly attractive to crooks and charlatans, or in other words Binary Options Scam. The fact that regulators (CySec, FCA, CFTC) take measures to prevent binary options related schemes does not make the industry scam free. Professional crooks are out there, trying to fool nave traders en mass, with flashy sites and big, empty promises.
