However, there are a number of differences that must be taken into account.
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Broadly speaking, these are:. Investment time or term: In binary options: trades have an expiration period. In Forex: the operations are open indefinitely until the trader decides when to close them. Trading margin: In binary options: margin is not available. In Forex: the margin is determined by the broker this margin will allow you to increase your investment capital in order to obtain a greater profit. Calculation of profits and losses : In binary options: they are calculated as a fixed percentage of the invested capital, only the final price being relevant.
When a trade is opened, the trader already knows how much he can win or lose. In Forex: they are calculated by the number of pips, which are obtained by subtracting the price paid when closing the operation minus the final price.
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Then, the value of each pip is multiplied by the number of pips obtained to arrive at the profit or loss of the operation. Therefore, profits or losses are variable. In Forex: the loss is more variable, since it depends on the management of the trader. Finally, as always, our recommendation: study and train well in all these concepts and start operating in a moderate and planned way, investing small amounts until you feel safe.
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