Up until recently financial trading was only available to professional traders and financial institutions who had direct access to the market place, but now days the internet has made this form of trading available to anybody with an internet connection and it is now possible to trade stocks, commodities and Forex from the comfort of your own home. One of the newest ways to trade financial markets and in particular the Forex market is in the form of binary options. This form of trading has had explosive growth, the main reason being that it has opened up trading in areas of the financial market that were previously only available to professional traders working for financial institutions.
Forex trading or foreign exchange trading is the worldwide market where currencies are traded on almost a 24/7 basis and the volume of trade in the forex market is massive. So why are people now choosing to deal in binary options and why are some foreign exchange traders also now turning to binary options. The main reason is its simplicity, trading in binary options is much easier to monitor, stripped back to its basic form a trader only requires to know if the price of an asset will go up or down and that the direction selected was correct. With standard forex trading the amount of movement in the currency is directly linked to the profit or loss on a single trade, the greater the movement the greater the profit or loss and so the greater the risk. This is not the case in binary options trading , as trader you just have to predict if the price will go up or down , the amount in which it moves is irrelevant, at the beginning of the trade the risk is known and also the potential reward is know. This simplification of forex trading is why this form of binary option trading has grown at such fast rate.