Forex binary options
This binary option type echoes the tales of the past years. Apparently, brokerage companies that add this method of trading to their trading terminals thus allow their own traders, who switched from Forex to binary trading, to feel and taste the nostalgia, especially given the fact that trading conditions this option type are very similar to the existing conditions in the Forex market.
Thus, an essential condition of this type of option is that it contains predefined settings stop-loss and take-profit parameters in points. At the same time, as an exception, this option type lacks contract expiration, and the amount of profit is equal to the size of the loss, in the ratio of 1: 1.
Thus, a trader, who contracts Forex binary option, is betting Call-option, stipulating that the price of the instrument for an indefinite period of time will rise until reaching the price level of profit specified in the parameters. With a positive outlook, when the price has passed a predetermined number of points, the trader makes a profit. In the opposite case, if the price has gone in the opposite direction from the predicted, the trader receives a loss.
If you want to choose the broker for Forex options trading, you can use our binary options brokers rating.