Forex Euro Dollar Rate

Many traders think of the stock market when they hear about binary options. However, the Forex also offers retail traders great opportunities to make some high returns. Binary Forex options trading allows you to limit risk and see profit in little as one hour. Here we’ll discuss what Forex binary options are, how they are used and which strategies you can use to profit.

Let’s begin with a short explanation about the Forex before we get into binary Forex options trading. A global, decentralized over-the-counter financial market for the trading of currencies, the Forex, or Foreign Exchange Market, allows banks and other institutions to easily buy and sell foreign currencies. Financial centers around the world act as hubs for trading between a large variety of buyers and sellers day and night, except for weekends. For example, it enables an American company to import products from South Africa and pay in Rand even though its income is in dollars.

The exchange rates of currencies on the Forex fluctuate (floating currencies) according to the market. A currency’s value rises if the market demand for it surpasses the available supply and drops in the opposite scenario. This is where binary Forex options trading comes in – a new type of investment that allows the average person to be active on the Forex. Binary Forex options trading via an online platform offers you a tool to purchase Call and Put positions on chief currency pairs like the US Dollar against the Japanese Yen and the US Dollar against the Euro, among many others. Forex Euro Dollar Rate

Online Binary Forex options trading enables the middle or amateur investor the chance to trade on the Forex with smaller amounts of capital but with the same high yield returns as any other method. Plus, returns can be collected in just one hour. What you are doing with this form of trading is attempting to predict whether or not one currency in a pair will trend up or down against the other.

Let’s look at the Forex options trading available at online binary options trading platform anyoption.com – a leader and pioneer in the field. They offer trading on the following pairs: Forex Euro Dollar Rate

Australian Dollar (AUD)/US Dollar (USD)
Euro (EUR)/British Pound (GBP)
Euro (EUR)/Japanese Yen (JPY)
British Pound (GBP)/ Japanese Yen (JPY)
New Zealand Dollar (NZD)/US Dollar (USD)
Euro (EUR)/US Dollar (USD)
US Dollar (USD)/British Pound (GBP)
US Dollar (USD)/Japanese Yen (JPY)
US Dollar (USD)/ South African (RAND)
US Dollar (USD)/Canadian Dollar (CAD)
US Dollar (USD)/ Swiss Franc (CHF)

Each Forex options trading currency pair has an expiry level calculation. Let’s look at AUD/USD as an example. This currency pair, like most, has hourly, end of day, end of week and end of month expiry times. The expiry formula is the sum of the ASK value and the BID value, divided by two [(ASK+BID)/2]. The result is rounded up if the fifth decimal digit is 5 or higher and rounded down if the last decimal digit is 4 or lower. Forex Euro Dollar Rate

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How to Trade the Forex Market Using Binary Options
By Alex Cadens

It is no secret that the Forex market can be a very profitable place to be if you want to make money by trading currencies.

However, it is also no secret that achieving consistency within the Forex market requires a lot of preparation (you need education and reliable trading tools) because not only you need to have a good idea of where the price is about to move, but also how far it is going to go.

For instance if you are trading the EUR/USD pair and you decide it is a good idea to go long, you would place a “buy” order, because you are expecting the price of the Euro against the dollar to go up.

If you placed your trade using 1 mini lot (this equals $1 profit for every pip), and your target for that trade is 30 pips, you would need to have at least $1,000 in your account to meet margin requirements and allow some room for drawdown, and if the trade is successful you will make $30 in profits.

However, in order for this to happen the price of the Euro has to move 30 pips against the dollar, otherwise you will not reach the intended target and realize the profits. As you can see, if you trade the Forex market using the traditional approach you will have not only to predict where the price is going, but also how far it is going, which simply makes it twice as difficult.

Now, if you have $1,000 in a binary options trading account, what would you need in order to place a successful trade, and moreover, what kind of profits a successful trade would deliver for you?

In order to answer this question, let us assume that the price of the EUR/USD is at 1.47849 and based a given analysis of the market (e.g. swing trading pattern recognition) you think that the Euro is trending up against the Dollar.

In this case you would go long as well, but instead of placing a “buy” order for currency, you would simply buy a $100 call option for the EUR/USD pair with a 1 hour expiration. If you are right and the  price goes up, even if it is only 0.001 pip above the price you purchased your call option (which is the strike price), and it remains there or above until expiration, you would get as much as 75% return on your $100 investment.

In other words, a single $100 trade could easily deliver $75 in profits and you could repeat this process several times during the day.

But the remarkable thing here is that you did not need the price to go up 30 pips in 1 hour to get a 75% return on your investment, you only needed 0.001 points of variation to achieve this.

In this scenario you certainly had to determine in what direction the price was going to move (this is usually an ingredient of the trading process) BUT your forecast did not have to take you all the way to a 30 pips increase in the price in order for you to make get the expected return, because you got it with just 0.001 points of variation, and you made $75 instead of $30.

Also, you can open a binary options account with only $100 and you can trade with as little as $30 with no commissions charges.

So as you can see, the potential of Forex trading through binary options is huge and the process is far simpler thus increasing your chances for profitable trades, however, you do need to have a sense of where the market is going. Provided that you have this, you are likely to make take far more winning trades than losing ones and a lot more money as well.

If you are new to binary options you can Gain FREE Access to a complete trading package that will teach you how to accurately find the direction in the price of any asset, currency or index, thus enabling you to be profitable at Binary Options Trading.

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