It is no secret that the foreign exchange market could be a very profitable place to be if you would like to make cash by trading currencies. 

However , it’s also no secret that achieving consistency within the currency market requires a lot of preparation ( you want education and trustworthy trading tools ) because not only you have to have a good idea of where the price is getting ready to move, but also how far it is going to go. 

for instance if you are trading the EUR / USD pair and you decide it is a good idea to go long, you would place a “buy” order, because you are expecting the price of the EU Buck against the dollar to go up. 

If you placed your trade using 1 mini lot ( this equals $1 profit for every pip ), and your target for that trade is thirty pips, you’d need to have at least $1,000 in your account to meet margin needs and permit some room for drawdown, and if the trade is successful you’ll make $30 in profits. 

However, in order for this to occur the price of the EU Dollar has to move 30 pips against the buck, otherwise you will not reach the intended target and realize the profits.  As you can see, if you trade the forex market using the traditional approach you will have not only to predict where the price is going, but also how far it is going, which simply makes it twice as hard. 

Now, if you have $1,000 in a binary options trading account, what would you want to place a successful trade, and likewise, what sort of profits a successful trade would deliver for you? 

In order to answer this question, let us say that the price of the EUR / $ is at 1.47849 and based a given research into the market ( e.g.  Swing trading pattern recognition ) you think that the Euro is trending up against the Dollar. You can see an example of a real case study of financial software for forex trading hitting a rolling stop-loss here.

In this situation you would go long as well , but rather than placing a “buy” order for currency, you would simply buy a $100 call option for the EUR / bucks pair with a 1 hour expiration.  If you are right and the price goes up, even if it’s only 0.001 pip above the price you purchased your call option ( which is the strike price ), and it is still there or above until expiration, you would get as much as 75% return on your $100 investment. 

In other words, a single $100 trade could deliver $75 in profits and you could repeat this process many times in the day. 

But the noteworthy thing here is that you did not need the price to go up thirty pips in one hour to get a 75% return on your investment, you only needed 0.001 points of variation to reach this. 

In this scenario you certainly had to establish in what direction the price was going to move ( this is mostly an ingredient of the trading process ) BUT your forecast did not have to take you all the way to a thirty pips increase in the price for you to make get the anticipated return, because you got it with just 0.001 points of change, and you made $75 rather than $30. 

Also, you can open a binary options account with only $100 and you can trade with as little as $30 with no commissions charges. 

So as you can see, the potentiality of forex trading thru binary options is huge and the method is far faster therefore increasing your probabilities for moneymaking trades {, however ,} you do need to have a feeling of where the market is going.  Provided that you have this, you are probably going to make take far more winning trades than losing ones and a ton more money as well . 

If you are new to binary options you can read more currency trading tutorials here that may teach you the simplest way to exactingly find the direction in the cost of any asset, currency or index, thus enabling you to be profitable in your trading.