Stocks and commodities trading has been with us for the longest time ever and only accredited stock market brokers had been allowed to sell shares on the behalf of shareholders. Well those were the days when forex and binary options trading had not come into being, and many people only heard of it. Today, forex trading goes hand in hand with stocks trading, only that this times, options traders deal with internationally recognized commodities and not the local ones. This creates big a difference between the people who trade online, and those who have to attend to office halls to trade commodities. Although these two may differ by a small margin, the idea is all the same, to trade and make profits from virtual commodities.

Online trading comes in two forms, binary options trading, and forex trading.  Binary options trading involved learning and understanding the market trends, then making possible bids on how a certain commodity or currency pair will be at within a speculated period of time. When the commodity hits that mark within the given time, the trader cashes in 60% of the total bid, and if the commodity doesn’t hit the mark, he or she then losses 100 percent of the bid price.

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The good thing with binary options is that, you have all the time you need to learn and understand the markets before you can start trading with it. You also have time durations between bids to see what outcome your bid will produce. Here, you have to wait until the specified time is over to see if you have made a profit or even a loss. This means you can place bids, then leave the trader to do its work as you undertake other chores or activities. You however need to be very sure of your predictions otherwise you could make incredible losses.  You also have a choice to decline trading if the commodities are fluctuating and unpredictable. With the help of live charts and ticker bars, one can understand and learn a commodity trend, then choose whether it is right to trade on it or not.

Forex trading on the other hand works a little differently from binary options. However, just like with binary options, you need to study the market and know what the current trend is before making a bid. The only different part and function with forex trading is that, you do not have to wait till your predictions are approved. The moment you get a heads up that a certain commodity is appreciating or depreciating, you then get to bid for or against it. as the market trends continues, forex charts starts showing you how much loss or profit you would earn if you sold or bought at that point. You should remember that, you had already initiated a transaction, and are waiting for perfect time to close it. If the market trends are moving as per your predictions and assumptions, then the trading platform shows you a green sign with figures of how much you can earn is you close the transaction at that moment.

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Here, patience is highly needed because you can wait for hours until your predictions to come right or to achieve the target you want to make with the transaction. Under most circumstances, many novice traders will close the transaction the moment it starts showing some profits. Long-term investors however wait until the time is ripe, and the moment when they commodity shows signs of dropping or gaining, then close the deal.  The one advantage of trading with binary options is that, you can make multiple deals and transactions at one go and the profits and losses are also not predetermined. This means that, one sell can generate crazy money especially if a commodity continues to appreciate over time, and you sell it at its peak. You can also lose all your money by the click of the button, especially if you make a wrong move. Unlike trading with binary options where the trading platform gets to close your deals, in forex trading, you have to close your deals before the end of each trading session, or the front desk will do it for you no matter what outcome. Patience and research is very much needed when dealing with online forex trading.

Another thing you need to understand about binary options trading is that, once you initiate a transaction, you already know what you will make, or lose when the deal closes. This means you can calculate your profits or losses before they happen, which helps you determine whether you will take another trade or not. Forex trading handles the opposite. The markets get to determine what you will make or loose in the long run. This however depends with the amount of margin balance available in your account. If the market trends favor you, you can then make as much money as possible, as long as you are patient enough. If the market starts moving against your predictions, you get to determine at what point you will give up and close the deal. This means you need to be very wise and determined to deal with binary options trading.

If you are planning to start trading online and are unsure what platform to choose from, you then need to assess the risk factors. If you are cool with operating with a predetermined profit or loss with every transaction, then binary options will work for you. However, if you want to venture in the world of unknown and want to determine how much you earn or loose, then forex trading will make way for you. All in all, all these trading platforms, whether the stocks exchange trading, binary options trading or even forex trading deal with one initiative, to make more shares than you ever heard. Although there are risks involved with trading on commodities, the need to understand the markets and its trends before initiating a transaction will determine whether you will emerge fruitful, or just a loser. All decisions depend on you.

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