Hello,
This is most key, the reward to risk ratio on Binaries is Much Much higher than Spot Forex. You can buy your typical binary option for $20 per contract (and some you can buy for $5!) This means if you win, you gain 5X your investment, or what you risked! ($20 x 5 = $100) To do this on a Spot Forex Position you would have to travel into positive territory that is five times your stop loss! This hardly ever happens because the Forex market is like a thrashing wild animal , and it's hard to tell when a turnaround is in progress. Most Spot Forex Traders more often than not only have a take profit that is around the equivalent of their stop loss. This means that a lot of Spot Forex traders are only gaining what they risk.
This is most key, the reward to risk ratio on Binaries is Much Much higher than Spot Forex. You can buy your typical binary option for $20 per contract (and some you can buy for $5!) This means if you win, you gain 5X your investment, or what you risked! ($20 x 5 = $100) To do this on a Spot Forex Position you would have to travel into positive territory that is five times your stop loss! This hardly ever happens because the Forex market is like a thrashing wild animal , and it's hard to tell when a turnaround is in progress. Most Spot Forex Traders more often than not only have a take profit that is around the equivalent of their stop loss. This means that a lot of Spot Forex traders are only gaining what they risk.