Definition of Binary option currency’
Forex binary options offer all-or-nothing fixed payout based on the exchange rate when the option can be as little as five minutes after the purchase of the option. Binary options do allow you to speculate on the currency, not an investment.
Binary option breaking down the Currency
Forex binary options are a form of online gambling in the currency markets, rather than investing, because unlike spot trading, you will lose the whole bet, if binary option in the money at the time of expiration. The insurance premium on currency binary represents the consensus probability that the exchange rate of the strike will be reached by expiration. To make any money, You should be good in half the time.
Because the odds are stacked in favor of the house, short-term volatility in the currency markets makes us constantly win on binary options very difficult. No one, even the best professional Forex traders can know what will happen with the course in the next 10 minutes. However, binary options trading, which is a relatively new and complete unregulated market, not to appeal to people who enjoy exciting gaming products like online poker.
Currency binary options are mostly limited to major currency pairs like EUR/USD, GBP/USD and USD/JPY. As Forex spot trading, investors can start trading online with relatively small amounts of capital. For a deeper look into binary options, read our guide Forex trading with Binary options.