It is no secret that the currency market can be a very profitable place to be if you’d like to make cash by trading currencies.
it’s also no secret that achieving consistency within the currency market needs a lot of preparation ( you need education and trustworthy trading tools ) because not only you need to have an excellent idea of where the price is about to move, but also how far it is going to go.
for example if you are trading the EUR / dollars pair and you decide it is a sensible idea to go long, you would place a “buy” order, as you forecast the price of the Euro Buck against the dollar to go up.
If you placed your trade using 1 mini lot ( this equals $1 profit for every pip ), and your target for that trade is thirty pips, you’d need to have at least $1,000 in your account to meet margin wants and permit some room for drawdown, and if the trade is successful you will make $30 in profits.
However, in order for this to happen the cost of the EU Buck has to move thirty pips against the buck, otherwise you will not reach the planned target and realize the profits. As you can see, if you trade the forex market using the standard approach you will have not only to foretell where the price is going, but also how far it is going, which simply makes it twice as hard.
Now, if you have $1,000 in a binary Options Trading account, what would you want to place a successful trade, and likewise, what kind of profits a successful trade would deliver for you?
In order to respond to this question, let us say that the price of the EUR / $ is at 1.47849 and based a given research into the market ( e.g. Swing trading pattern recognition ) you think that the euro is trending up against the Dollar. You can see an example of a real case study of financial software for forex trading hitting a rolling stop-loss here.
In this example you would go long as well , but rather than placing a “buy” order for currency, you would simply buy a $100 call option for the EUR / USD pair with a 1 hour expiration. If you are right and the price goes up, even if it’s only 0.001 pip above the price you bought your call option ( which is the strike price ), and it is still there or above till expiration, you would get as much as 75% return on your $100 investment.
In other words, a single $100 trade could deliver $75 in profits and you could repeat this process several times during the day.
But the remarkable thing here is that you did not need the price to go up 30 pips in 1 hour to get a 75% return on your investment, you only required 0.001 points of change to succeed in this.
In this eventuality you certainly had to determine in what direction the price was going to move ( this is mostly an ingredient of the trading process ) BUT your forecast did not have to take you all the way to a 30 pips increase in the price for you to make get the anticipated return, because you got it with just 0.001 points of change, and you made $75 instead of $30.
Also, you can open a binary options account with only $100 and you can trade with as little as $30 with no commissions charges.
So as you can see, the potentiality of foreign exchange trading thru binary options is giant and the method is far faster thus increasing your probabilities for profitable trades {, however ,} you do need to have a feeling of where the market is going. Provided that you have this, you are probably going to make take much more winning trades than losing ones and a ton more money too.
If you are new to binary options you can read more currency trading tutorials here which will teach you the simplest way to accurately find the direction in the cost of any asset, currency or index, therefore enabling you to be profitable in your trading.
