For Forex traders who are looking at trading Forex binary options, it might seem like the binary options are child’s play compared to the complicated strategies involved in trading on the Forex marketplace. While it is true that binary options are much less complicated than traditional Forex trading, it still requires the use of a strict binary options trading strategy in order to make long-term profits.
Binary options are incredibly simple investment products where the trader merely has to predict whether an asset will move up or down in price over a set period of time. If the trader is wrong, he simply loses his investment, while if he is correct; he profits as much as 90% from the trade. Additionally, these options have very fast expiry times, often less than an hour, with the shortest options lasting a mere 60 seconds.
What this means is that a binary options trading strategy is far more focused on technical analysis than fundamental analysis. Successful strategies are based on the proper reading of charts and fine-tuning the trade and making it at exactly the right time. While market analysis and fundamental analysis do of course play a role in binary options trading, they are far less relied upon than in traditional Forex trading.
It also means that anyone can learn to trade Forex binary options without having in-depth market knowledge. Traders who learn to read the signals correctly and make the right trades at the right times from the charts are able to turn long-term profits. More than anything else, this makes Forex binary options trading attractive to both pros and newbies alike.