Fored Binary Options

Forex Binary options provide you fix payout which means a fixed loss or a fix profit. It is a financial instrument that you bet on, if the underline market moves beyond the strike price you have chosen, you make a profit if the underline market moves below the strike price that you have chosen, you make a loss.

Now you have to decide whether the market is likely to be above a certain price at a certain time or not. Trading a binary option is very simple let me ask you a simple question will this market move beyond is about this price at this time if you think it will then you buy an option if you think it won’t move then you sell an option.

First: You have to choose the underlying currency pair that you want to trade
Second: You have to select the strike price of the binary option.. then you have to decide will the market move beyond a particular strike price or not, or if it will remain below that strike price.
Third: You have to choose the expiry date of that option. Forex binary options has expiry date up to one week or have a shorter duration of up to 5 minutes
It’s like betting on a 20 overs cricket match you have to decide whether the opposition team will chase the score in the 15th over, 16th over, 17th over, 18th over, 19th over, or in the 20th over or they will lose the match.

Yes, the Forex binary options are 100% legal to trade in the US but only with a regulator provider. It has low capital requirements. It is regulated and is also accessible to retail traders. The only thing you have to check that you are trading with a regulator broker and you also have to ensure that the exchange is based in the USA and that the trade you do is in your account.

First of all trade with only CFTC-regulated exchange
Second, Don’t engage with anyone who says they will trade for you in your account or anyone who claims to be a broker do your research for a regulated action.
Third, and most important one trade in your account.

Forex Binary option traders make money if they predict the market correctly. Which means they have to decide whether the market will move above a specific strike price at a specific time at the expiry of the option. You either make predefined profit or make a predefned define loss that you have paid to buy the option or sell the option.
Forex binary options are price between $0 to $200 for each contract. Each contracts shows you maximum amount you can lose and maximum amount you can gain on that contract at that expiry.
If your trade is successful you receive your predefined profit share. if you are trade is not successful you lose. the money you paid to trade. It means you have lost the money that you have put in trade.

A Piece of advice. Don’t directly jump in trading. First, Create a Strategy then do option backtesting and then start trading.

Forex Binary options are often short term and are limited. Binary option contracts comes with two possible outcomes at the expiry of the option. You either make a predefined profit or predifined loss (you lose the money that you paid to buy or sell the option. The payoff is fixed on the either side of the strike price.

Traditional forex options are also called Vanilla options. In traditional options the profit depends on the difference in the strike price of the option and the price of the underline asset. Traditional options are complex and difficult to understand and have the potential for huge profits or losses.

There is no minimum amount fixed to trade in a binary option. There are many places regulator brokers where you can trade, at Nadex, the option prices are between 0 to 100 dollars excluding exchange and transaction fees . You just have to have enough funds in you account that you can buy or sell an option plus the trading free and charges when you place an order.

There are 11 foreign exchange pairsa in which you can trade in binary options.

• EUR/USD – Euro-US Dollar
• AUD/USD – Australian Dollar-US Dollar
• USD/JPY – US Dollar-Japanese Yen
• GBP/USD – British Pound-US Dollar
• USD/CHF – US Dollar-Swiss Franc
• EUR/GBP – Euro-British Pound
• USD/CAD – US Dollar-Canadian Dollar
• AUD/JPY – Australian Dollar-Japanese Yen
• GBP/JPY – British Pound-Japanese Yen
• EUR/JPY – Euro-Japanese Yen
• USD/MXN – US Dollar-Mexican Peso