When it comes to trade in Forex market, binary option is a binary outcome which position at a pre-determined value. This positioned value depends on either asset price which is under the binary option or above the striking price.
It’s essential to speculate the asset price over its current price which could be analyzed by having accurate forex trading signals in order to predict the cost of currency.
Binary Options for buyers & sellers:
For the buyer, the option is traded as per the cost of the option. And for the seller, the cost of the option is a difference between the 100, option price & 100.
Buyers believe that the cost of the binary option will make trade successful. In addition, the high probability of the asset price which is rising above the strike will depend on large amounts of binary option price. And from the seller’s point of view, the probability will be hundred minus the cost of the option.
Binary Options on Forex:
Stock exchanges such as ‘Nadex’, offers the most common pairs including EUR-USD, USD-CAD and USD-JPY with another type of currency pairs which are widely traded. These binary options trade comprised of intra-day as well as on a weekly basis, which needs accurate currency trading signals while trading in the FX market.
Trading in binary option is a profitable & alternative option, when it comes to trade in forex market. Besides this, binary option helps to minimize the risk factors even after currency price hikes up. It’s a valuable alternative to trade in FX market.