Binary Options vs. Options What is the Difference

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Broker 2020!
    Perfect For Beginners!
    Free Trading Education!
    Free Demo Account!
    Get Your Sign-up Bonus Now!

  • Binomo
    Binomo

    Good Broker For Experienced Traders!

IQ Option VS Olymp Trade: What Are The Differences? Which is Better?

If you taken the chance to look at the trading platforms of IQ Option and Olymp Trade, you probably noticed that there are many similarities. Then, what would be the differences? I’ve actually wrote a brief comparison on my Regulated Option Brokers page, but as it’s becoming a hot topic on my FB inbox messages, as well as my Youtube comments, here’s a detailed head-to-head comparison of IQ Option VS Olymp Trade.

VS

If you’re an experienced trader just looking for a new options broker to use, you can click one of the banners above and within seconds have your free demo account with either broker to test to your heart’s content.

More than just the interface, actually depending on the assets you like to trade, one may more appealing to you than the other.

However, if you’re fairly new to this, or perhaps you’re unfamiliar with these new all-in-one type brokers that have charting indicators and technical analysis tools all built-in, you make like to watch the following video. I will be talking you on a tour of both platforms so you can understand how each one is and how IQ Option and Olymptrade are different.

Pro Tip: By the way, you are not confined as a trader to only have an account at one broker. Personally, and many of my Binary Lab members have had more than 1 account at one time because different brokers offer different functions, assets, and payouts – and sometimes at different times of the day.

Watch The IQ Option and Olymp Trade Comparison Video Below…

Free Demo Accounts within Seconds!

These newer brokers have greatly streamlined the process of signing up to experience options trading on an all-inclusive platform. For quick signup, you can simply use a Google+ or Facebook social account to sign up within 1-2 clicks!

(Of course, if you’ve previously signed up but would like to now sign up using my link to support me, you would have to use a different email account in the sign up, and don’t forget to enter your user profile area to close the previous account! Thanks in advance!)

Regulated Brokers Reviews

This was the other page I referred to in my video. Click HERE to access it.

Detailed Platform Reviews on IQ Option and Olymptrade

IQ Option Trading Platform Review:

Here is a video I recorded reviewing the IQ Option trading platform. For more content on this broker, also check out my Youtube Channel which is regularly updated.

(If you get redirected to our broker selection page, it means your country is not eligible to use this broker.)

OlympTrade Trading Platform Review:

Here is a video I recorded reviewing the Olymptrade trading platform. For more content on this broker, also check out my Youtube Channel which is regularly updated.

PRO Tip: IQ Option and Olymptrade both offer VIP Accounts. These are for those people who are serious about making an income from options trading. For a very small minimal deposit (compared to stocks, CFD-accounts, or US stock-options accounts), you can actually start a VIP account to receive higher payouts in the range of 92-95% (broker-specific), exclusive access to bonus webinars by external trainers, market analysis, and your personal account manager.

Thanks for reading! Hope you found this helpful!

** Note: You could be a recipient of a FREE membership to Binary Lab! I have various programs ranging from intermediate to advanced, such as “Binary Lab Basics”, “Martingale Mastered”, and “Binary Lab Elite”! Depending on which country you’re from and your account type, you may have already qualified for free access to one of my courses. If you opened an account via my links above, simply message my FB page admin (here) with your acc ID to see if you qualify!

P.S. Sign up for my email updates HERE

*Profits in options are gained on correct prediction. We can only increase our probability in making a gain through knowledge and practicing sensible money management in cases where things run against expectation. Binary Lab was setup to empower traders through knowledge and shared experiences.

General Risk Warning: Trading in these financial derivatives carries a high level of risk and can result in the loss of all your funds.

Thread: What is the difference between digital options and binary Options, what are the clear advantages and expected disadvantages?

Thread Tools
Search Thread
Display
  • Linear Mode
  • Switch to Hybrid Mode
  • Switch to Threaded Mode

What is the difference between digital options and binary Options, what are the clear advantages and expected disadvantages?

What is the difference between digital options and binary Options, what are the clear advantages and expected disadvantages?

There are tactics that we take into consideration before we trade in the binary Options, I am also amazed that there are different ways of doing this but there are few different between the binary Options and digital options that can be noticed, with the digital options we have the opportunity to allow ourselves make more necessary that what is happening is we allow price to pass through the strike through and move above, as price moves away from our entry location with some distance, it means that we are going to be maintaining more profit at the end of the trade, this has a disadvantage because we can also lose more when what is being experienced is the opposite. This is actually not the case with the regular binary trading options because we lose the exact amount.

“”It is also called binary option.The digital option is a form of option contract that has a guaranteed payoff if the underlying asset moves past the specified threshold or strike price. The initial cost is considered the paid choice rate, which is the highest expense for the option.””

Example:
For instance, it’s 1 p.m. (AEDT) and gold is traded at $1280.
You conclude that gold will have risen in value by 3 pm the same day, so you agree to purchase a call option with a $1300 strike price. Although the market that turn around in the next two hours, what counts is the price of gold at 3 p.m.If your prediction is correct, and gold is trading above $1300 by 3 pm, you’ll see a return on your money. But, if the price of gold goes down by 3 pm, you’d make a loss instead.

Forex trading is seen to be very good when we want to make comparisons, in trading options we have more losses exposure and expectations because that is the problem that can happen with gambling, but then there is not much difference between the binary Options and the digital options because they have Same characteristics, the basic difference is that while one is having a different method of trading it, there is something about the other that makes it flexible, so in terms of ease of trading, we can assure ourselves that it is very important to trade in the binary markets before we consider trading the digital market. What then we should consider the money management that we apply for each as that is what can determine what we can gain for ourselves eventually.

For participants of the financial market, it is not unpopular to have the knowledge of the forex trading business coupled with trading binary or digital option. These financial markets are equally profitable just like the forex market but then they have few differences which suggests their uniqueness. However, the binary option and the digital option maintains much similarity as against the forex market. Binary options require that an investor enters into a trade and chooses the direction as to which the price would go whether up or down, in the case where the market moves in accordance with what has been executed by the investor from the strike position, he is in profit. Digital option on the other hand then goes ahead to pay attention to not only the direction of price in the market but also the distance that exist from the strike position too, all this adds up to determine the profit or loss a trader would make.

A digital option is a type of option contract that has a fixed payout if the underlying asset moves past the predetermined threshold or strike price. There’s an upfront fee called the premium for digital options, which is the maximum loss for the option. Unlike traditional options, digital options dont convert or exercise to the underlying assets shares. Instead, they pay out a fixed reward if the asset’s price is above or below the option’s strike price. Digital options are also referred to as a binary or all or nothing options. Options are financial derivatives, so they receive their value from an underlying asset or security.

People always assume that binary Options is nothing that we should consider about earning from the financial market, but actually we should understand that trading anything we have not understanding about, trading binary Options or digital options are essentially same thing because what we are basically doing is called speculation about whether price would increase or decrease, but then there are rules that we need to basically follow, someone that has not back tested his strategy in the demo account will rarely understand what it takes to earn from the live account using the binary Options and most traders make this mistake consistently. Diagonally, we can trade in both markets and still make something.

There are only two possible outcome of forex trading which is either you lose or you make profit, and that’s what is called the binary option. This means the exchange rate a trader purchased at a certain price and hopeful of making profit based on prediction, or may lose all their entire investment, or just get a little consolation when there prediction is wrong, so binary option is based on that only two assumptions.
While, the digital option combines the power of the binary option and the increase in the price of the underlying asset, the digital option is calculated based on how far away the price move away from the strike price.

There are three main differences between digital options and binary options which are :
– In digital options, you can choose between different strike prices in the market, while in binary options there is no more choices of strike prices but you only have one choice which is the current market price which is the only available strike price to traders that they can enter to the market from it.
– In digital options, if the price at expiration is equal to the strike price of the option, this means that the trade closes at loss and the trader loses his investment, while in binary options if the price at expiration is equal to the strike price of the option, this means that the trade closes at no losses or profits and the trader doesn’t lose his investment.
– Digital options have a higher risk-return compared to binary options.

Advantages of options :
– The maximum loss of options is limited and represented only in the amount of the investment which you put to open the option.
– Options pay a fixed amount if the price moved beyond the strike price based on the expectations.
– Options trading are easier than Forex trading, where it depends on both the little experience and the luck.

Disadvantages of options :
– Profits of options are limited due to the fixed payouts regardless price movements.
– Using the highly rated options are very risky and need to a suitable experience and knowledge.
– options may be risky if traded on unregulated brokers, so we should only work with the regulated brokers.

Trading binary options is deem to be very dangerous because we are basically trading against time and not for the profit that could come advances for the best answer that we unable done to make, trading options that we cannot engage in without knowing what is going on, sometimes people are making some financial decisions without understanding the essence of what is happening, if you don’t understand the movement in the Forex market, there is nothing that could make you earn from the binary opportunity that you wish to get, that is one disadvantage that people don’t understand, that trading in the Forex market is even better because you have different challenges and tools that can help you solve them automatically but with binary options, there are different exposure that you faced in terms of the risk disadvantages.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  • BB code is On
  • Smilies are On
  • [IMG] code is On
  • HTML code is Off

Forex Forum mt5.com – Introduction.
Forex market is high-yield and risky mean of taking profit by operations with the currency rates. Instruments of work at Forex market in many ways determine the result of currency trading made by Forex market participants – brokers’ clients. Every Forex broker offers its own terminal, however the most part of brokers and traders concur in choosing MetaTrader 4 and MetaTrader 5 terminals. This forum is created for those who prefer the terminal of MetaTrader series in trading on Forex.

Forex Forum mt5.com – trade discussion.
Forex market forecasts, independent opinions of novice traders and experts of the currency market – all this you will find at the Forex-forum of trades discussion. Solid experience of work on Forex is preferable, but all comers including Forex-newbies may come and share their opinion as well. Mutual help and dialog – the main goal of communication at Forex-forum, devoted to trading.

Forex Forum mt5.com – dialog with brokers and traders (about brokers).
If you have negative or positive experience of work with Forex broker – share it at Forex Forum, related to the questions of Forex service quality. You can leave a comment about your broker telling about advantages or drawbacks of work at Forex with it. The aggregate traders’ reviews of brokers constitute a rating. In this rating you can see the leaders and outsiders of the Forex services market.

Free discussions at the Forex Forum mt5.com
You are a trader and want to relax? Then Forex Forum for free discussions is for you. There are no doubts that conversation on subjects close to Forex market is preferential. Here you will find jokes about traders, caricature of Forex brokers and full-rate Forex off top.

Bonuses for communication at Forex Forum mt5.com
This forum is created by traders for traders and is meant for deriving of profit. However, each post at the Forex forum gives its author a forex bonus, which can be used in Forex trading at the account opened with one of the forum’s sponsors. This small gift is presented with the aim to reward professional traders for spent time at our forum.

We appreciate your choice of Forex forum mt5.com as a platform for communication.

The difference between binary options and forex

Although traders experienced in trading financial instruments such as foreign exchange can put some of their existing skills to good use in binary options trading, it is important to remember that there are substantial differences between the two.

Trading binary options therefore requires a unique approach.

In this lesson, we will outline some of the key differences between trading forex and trading binary options as well as some of the similarities. This will help you decide which type of instrument you are better suited to trading or, if you choose to trade both, be aware of what needs to be done differently.

Betting versus trading

Although binary options are quite rightly referred to as financial instruments, there are some ways in which they are akin to gambling.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Broker 2020!
    Perfect For Beginners!
    Free Trading Education!
    Free Demo Account!
    Get Your Sign-up Bonus Now!

  • Binomo
    Binomo

    Good Broker For Experienced Traders!

For example, the fact that you know in advance exactly how much you will earn if a trade moves your way makes binary options trading similar to fixed-odds betting on the results of sports matches or other events. Many traders regard binary options as a fast way to win (or lose) money.

For this reason, some countries continue to regulate binary options as a gambling instrument rather than a financial instrument (see Lesson 2 for more information). This is however changing.

In contrast, foreign exchange trading has a real practical purpose for the countless corporates and financial institutions across the world that use the market to facilitate international trade or to hedge currency risk on overseas income and expenditure. Individuals who trade foreign exchange also tend to take more of an investment approach, sometimes trading FX to diversify their trading portfolio or hedge risk on other financial instruments such as company shares or commodities.

Binary options are less complicated

Binary options trading is also generally less complicated than trading foreign exchange.

For example, the size of your payout with a binary option does not change depending on the size of a price move – all that matters is whether a certain point is reached or not. There is therefore no need to actively manage positions once you have entered a trade.

In foreign exchange, however, you earn (or lose) progressively more depending on how far in a certain direction the price of the underlying asset moves. For this reason, it is necessary to manage positions closely to avoid racking up excessive losses, or to use risk management tools like stop losses to automatically exit you from a trade that moves against you.

It is worth noting however that with both binaries and forex, trading can be as sophisticated or as simple as you choose, depending on the level of analysis you undertake and the trading strategies you use.

You cannot lose more than you invest in a binary option

With binary options, you know in advance how much money you will win or lose depending on the outcome. You also cannot lose more than your initial investment. Knowing from the outset what your maximum loss will be makes it easier to manage risk.

In contrast, foreign exchange profits and losses shrink and grow in line with the size of price moves. Losses can easily exceed your initial investment, subjecting you to a margin call. Because of the leverage employed in foreign exchange, such losses can also mount up quickly.

Only some forex trading skills are applicable with binaries

Because of the above, even traders with experience in trading foreign exchange will need to develop new skills and a fresh approach when trading binary options.

They should however find themselves at an advantage compared with complete novices in financial markets.

Skills that foreign exchange traders can put to good use in their binary options trading include technical and fundamental analysis, basic money management, and knowing how to develop a trading plan. Some more intangible benefits that also come with experience are being able to keep a cool head and knowing what time of day you tend to make your best trading decisions.

Summary

So far you have learned that:

  • you can trade almost any popular financial instrument through binary options
  • you can profit from binary options if you correctly predict, whether prices will finish above or below a certain point at the expiry of the options contract
  • with a ‘call’ option you speculate on rising prices, and with a put option you expect prices to fall.
  • the ’market price’ is the actual price of the underlying instrument, and the ‘strike price’ represents the level that is judged against the market price upon the expiry of the contract, to determine how your bet performed
  • ‘in the money’ refers to an expired option that met the predefined criteria and turned a profit; and ‘out of money’ means the option did not fulfil the criteria and you need to take a loss
  • there are many different types of binary options such as: high/low options, one touch options, double touch options, no touch options and boundary or range options
Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Broker 2020!
    Perfect For Beginners!
    Free Trading Education!
    Free Demo Account!
    Get Your Sign-up Bonus Now!

  • Binomo
    Binomo

    Good Broker For Experienced Traders!

Like this post? Please share to your friends:
How To Do Binary Options Trading?
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: