WHAT IS BINARY OPTIONS
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Binary Options are a fixed risk, fixed reward contract that has one of two outcomes, either the predetermined payout or nothing at all. This means the trader will know how much he stands to gain or lose before buying a position. This is why they are called binary options because they only have two possible payouts. A positive and a negative. It does not matter if it is one point above the strike price or point one below. The Binary Options payoff is the same.
WHAT IS FOREX
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The word Forex, means Foreign Exchange. When you trade in the Foreign Exchange market, you are trading in what is considered to be the largest and most liquid market in the world. This market is where foreign currencies are traded in pairs of two, one currency versus another.
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