Forex Trading vs Pair Options Trading
Forex trading has been available for a number of years, gaining wide popularity with a lot of investors. Pair Options are the new kid on the block, and investors are curious to know the differences between forex trading and Pair Options trading. Pair Options and forex trading are both done online with an Internet connection. All Pair Options trading platforms are 100% web based, whereas forex brokers often require you to download software to trade. Despite the benefits of forex trading, many new traders have chosen Pair Options due to the ability to manage risks and rewards more effectively.
With forex trading a trader purchases one currency in the pair and sells the other currency. Traders can choose from numerous currency pairs to trade. The most famous of these are the EUR/USD, GBP/USD and EUR/GBP currency pairs. In one scenario you may decide to trade the GBP/USD pair, you choose to sell USD and buy GBP. Therefore, over a certain amount of time you will want the GBP/USD currency pair to increase, thereby selling the GBP/USD currency pair and make profit from this investment.
Forex trading as a whole requires special trading skills, so beginners may have a hard time getting started with this trading instrument. Advantages of the forex market are that it is very liquid and available 24/5. What attracts a lot of traders to forex is the leverage factor and the fact that many forex brokers are freely available online.Forex trading involves leverage,enabling traders to trade with much more money than they put into a trade. For example, with 1:400 leverage and a $1000 investment,you are controlling $400,000. With this traders can make a lot of money from forex, but in over 90% of cases traders’ accounts are wiped-out by being over leveraged.
Pair Options Trading
Pair Options trading is predominantly done with the world’s leading stocks, and traders trade the seas stock pairs on their preferred Pair options trading platform. A notable benefit of this new and innovative trading instrument is that no software download is required, allowing traders to trade from their desired computer. A key advantage that Pair options offer over forex is the absence of the leverage factor. As a result, your funds are protected, while you can make up to 700% profit in each single investment. Many traders have chosen to trade Pair options more recently due to the ability to get started without prior trading experience.
Pair Options brokers out there let you start trading Pair Options from as low as $10 per trade. This is important, because from this small sum there is a realistic profit potential. When comparing this to forex trading, the minimum investment is often between $100-$1000, more than most traders are willing to layout. As for the deposit methods, the Pair Options brokers now offer PayPal and other easy methods. The future will offer traders the opportunity to try all different fixed and floating Pair Options contract times. With more and more traders yearning to control their own trading strategies, Pair Options look to pull the steam out of forex trading.