What is 'Online Trading'?
Online trading can be defined as the act of buying and selling financial products through an online trading platform. Or you can simply say it’s the act of placing buy or sell orders for the financial securities and/or currencies through the use of a brokerage's internet-based proprietary trading platforms.
How Online Trading Works
The use of online trades has increased the number of discount brokerages because online trading allows many brokers to further cut costs and part of the savings can be passed on to customers in the form of lower commissions.
Internet trading has given those who has a computer, enough money to open an account and a good financial history the ability to invest in the market. You don't need to have a personal broker to do it, and most analysts agree that average people trading stock is not a sign of impending doom.
Stocks in companies/organizations that re-invest their profits are growth stocks. Brokers buy/sell stocks through exchange, charging a commission to do so. A broker is defined as a person who is licensed to trade stocks through the exchange. A broker can be on the trading floor or can make trades by phone or electronically.
A binary option is a type of derivative option where a trader makes a bet on the price movement of an underlying asset in near future for a fixed amount. Or you can simply say that Binary options are option contracts with fixed risks and fixed rewards.
A Binary trader just needs to understand the real risks and rewards of these often-misunderstood tools. Binary options are very different from traditional options. If traded, one will find these options have different payouts, fees and risks.
Forex, also known as foreign exchange market is the "place" where currencies are traded. The forex market is the largest, most liquid market in the world with an average daily trading volume exceeding $5 trillion.
If you’ve ever traveled to another country, you usually had to find a currency exchange booth at the airport, and then exchange money you have in your pocket or wallet into the currency of the country you are travelling to. When you go to the counter, you will notice a screen displaying different exchange rates for different currencies.
When you do exchange your money, you’ve essentially participated in the forex market! You’ve exchanged one currency for another.
Binary Options vs. Forex Trading: Understanding the Difference
Forex trading and binary trading are different and it is very important to understand these differences in order to become.
New traders typically face a choice of whether to trade forex or binary options. They may also consider stocks, but since these endeavors are more capital intensive, forex and binary options are one of the most accessible to the average person. You can actually use the same charts for forex and binary trading. There are several differences between the two and these differences are likely to appeal to different traders.
There are of course some similarities between binary trading and forex trading. Both financial trading markets are tradable online, and they both allow users to start trading with small amounts of capital.
In both types of markets, users are always speculating on which direction an asset moves in. In the case of guessing correctly, both trading options provide strong profit potential.
Few similarities Binary Option and Forex Trading shared:
Both are tradable online and typically anytime the underlying asset market is open. For the forex market and binary forex options this means trading takes place around the clock during the week.
You can start trading either market with little amount of capital, which is usually around $100 but sometimes less. Since you don’t want to risk too much on each individual trade likely you will want to start out with more trading capital than $100.
Both can allow you profit or lose money according to which way the asset moves currency or otherwise.
Differences between forex trading and binary options trading:
Forex trading is more variable. This is good or bad depending on how the trader trades. A stop loss can be used in controlling risk, but market conditions can prevent the order from being executed at the expected price which results to a larger than expected loss. If a stop loss is not used, that means the risk of the trade is unknown. A profit target can be used to take profits at a particular price or percentage level, but there aren’t any guarantee that price will be hit.
Binary options trading is very simple than forex trading because there is no variability, you know your risk and profit potential and when the option expires you either loss or gain the pre- determined amount. With forex trading you don’t know your ultimate risk and gain until you close the trade. But this can be an advantage depending on your trading level as the fixed risk and gain of binary options offers small flexibility in customizing risk relative to a reward.
The reward and risk profiles for forex trading and binary options are drastically different. With the forex market you can customize your potential reward relatively to risk. E.g., you can actually place a trade and place a stop loss order which seriously exposes you to a $100 loss, and at the same moment place a profit target at a price which will give you a $300 profit. The trade stays open until one of the orders is hit, which results to $100 loss or $300 profit.
With binary options trading on the other hand your risk is almost always more than your reward. Binary options simply pay out 60% to 80%, but if you lose 100% of the money you placed on the trade is gone.
With binary options you seriously need a greater than 50% winning percentage on trades to breakeven (that’s about 55% or higher depending on the payouts) or make a profit. With forex trading you can lose more trades than you win, but since you can customize your reward relative to risk you could still end up making a profit.
Certain traders will like the flexibility of forex trading, while others will appreciate the simple transparency of binary option’s fixed risk and payouts. Etc.
Black Diamond Trader
“Black Diamond Trader 2” (http://blackdiamondtrader.com) is an EXTREMELY POWERFUL trading system with BUY/SELL “entries and exit” that can be traded manually or with the automated strategy/EA add-on (The Automator). Black Diamond Trader comes with instructions, manual, video tutorials and many more!
Black Diamond Trader 2 can be used by ANYONE who trades ANY market. Even if you wish to be a successful Scalper, Day Trader, Swing Trader, ot Position Trader
ANY financial instrument can be traded including:
Forex, Commodities, Futures, Stocks, Metals, E-Minis, Binary Options, Any Market.
It can work in Bull/Up Markets, Bear/Down Markets, Sideways Markets / Choppy Markets, Any Market.
Black Diamond Trader 2 instantly installs to Metatrader (MT4) or TradeStation 9 and can Trade:
Forex – Binary Options – Stocks – Futures – Commodities (ANY Trading Instrument allowed by your broker)
ANY Market Condition: Trending or Sideways
ANY Time Frame (including Range Charts)
Clear-As-Day Entry Signals:
At the beginning of a trend, a large dot always appear on the chart (red for bearish/down and blue for bullish/up).
These show the start of a possible significant move, as can easily be seen on the charts below.
During the move, the indicators will show exact optimal trade entry points with an “SE” (for short-entry) or “LE” (for long-entry).
Three Amazing Indicators to Validate the Trade:
As you already know there are many factors in play which can affect the markets. That’s why Black Diamond Trader 2 includes three powerful filters which will help you validate whether a signal are to be acted upon or not. These filters are the Trend Strength Indicator, Trend Direction Indicator and Market Sentiment Indicator.
It doesn’t take rocket science to be able to understand what these indicators are telling you. Like, if all the three of them are green, you know that you’re looking to place a long trade. If all three of them are red, you know that you are looking to place a short trade. It’s simple!
Just know what the overall market sentiment and current trend will be before placing a trade.
Know how to take advantage of pullbacks within that trend with accuracy.
Take high probability trades based on the detailed instructions that are included with Black Diamond Trader 2.
Know when the trend is weakening and find “profit targets” to get out of the market at the peak.
See potential weakness in a trend and potential turning points before they happen.
Protect your profits and trading capital with trailing stops which is based on REAL support and resistance levels that are accurate.
Price : USD 1 Click Here to Get Started!