The foreign exchange market, or forex, being the largest financial market in the World has been the domain of government central banks as well as for commercial and investment banks in a scandalous manner and it exists wherever one currency is traded for another
If you have ever considered investing online, then trading commodities with binary options form a better alternative. The way binary options trading functions is that first you pick an asset say for example crude oil, a commodity and either make a PUT or a CALL option. The payouts vary between 65% to as high as 81% during regular trading hours.
Unlike a stock market, the foreign exchange market is divided into levels of access. At the top is the inter-bank market, which is made up of the largest commercial banks and securities dealers. Within the inter-bank market, spreads, which are the difference between the bid and ask prices, are razor sharp and not known to players outside the inner circle.
Since the outbreak of unrest throughout the region, the markets have seen movements of 200-300 pips in a single day! Take advantage of this situation and get up to €3000 in bonuses with AvaFx
Contracts for Difference (CFD) are traded on margin, using leverage to maximize your trading capital. CFD, or Contracts for Difference, is a financial instrument similar to an index or share which allows you to trade an underlying index, share or commodity contract without having to own the underlying asset itself.
Both forex and binary option trading are very popular among traders these days, and many new traders are curious what the differences between the two are. While both forex and binary option trading can be done online, at any hour of the day, the ways in which they handle risk and exposure are quite different.