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Explain the characteristics of FOREX trading and binary option

Explain the characteristics of FOREX trading and binary option

Trading is a good way to earn money. It gives them opportunities to make side money business through a network which can be done from anywhere. But it also requires skills and characteristics in FOREX trader. It is the biggest financial market of the whole world having extreme liquidity and power by comparing it with the stocks and futures market. Forex trading South Africa is a common trading bussing for individuals. This is the best investment for a trader. It is the best financial market all over the world because of its characteristics that make it better at low costs with having transparency in it. Some of the characteristics are given below:

  1. Excellent liquidity: This market is the biggest market in the world where both the buyers and sellers are present and make transactions with ease and low costs. In this financial market, the traders are allowed to buy and sell the currencies of their choice. It allows traders to easily exchange the currencies without disturbing the rates of the currencies being traded. This financial market allows s you to earn the revenues at the time you are trading.
  2. Dynamic place: it is the most dynamic market worldwide. Even though of which instrument you are using to trade. Maybe it stocks, bonds of municipal, foreign exchange or other. It governs the market viability as an opportunity for investment properties to stay the same.
  3. All-time open market: The process for currency movement takes place in order to buy and sell currencies on the web after that other parties will approach transactions. The working hours of this market are complete 24 hours a day which allows trading but it is open for only five days a week.
  4. Transparent market: this financial trading is totally transparent because the merchant has all acquire market figures and information that are essential to do effective transactions. The traders govern their investments and have the ability to choose the action depends on the available information.

Binary options South Africa

Under the trading essentials, the trading instruments comes which is a Binary options South Africa. It is a financial product related to the earning or loss in the investment of the buyer. It depends on if the option terminates in the money. The binary option is totally based on the result of a yes or no proposal, so the term binary comes from this reason. The following are some characteristics of binary option:

  1. Expiry: These are generated by the brokers without the participation of control firms. It offers a broad variety of expiry duration that starts from thirty seconds. Apart from it the construction of vanilla contracts is known by the interchange and controlling bodies.
  2. Counter groups: The binary option is an OTC product. It can’t be traded with any interchange. The brokers offered the contracts that role as the seller.
  3. Extra charges: No other charges imposed by the option brokers to execute a trade. The brokers get the whole investment of a trader as their profit.