A novel form of options trading done by a new type of forex binary option broker has opened the high yield, fast paced world of forex trading to retail investors. A low cost forex binary option broker has given day traders with low capital the ability to trade and get the same kinds of high, short term returns as the highly capitalized leveraged forex traders.
Big Institutions Squeeze Out the Small Forex Trader
Foreign exchange is an extremely fast paced investment market, in which daily investor transactions are expected to top $110 billion dollars per day on the open exchanges. One would think the vast amounts of individual currency changing hands can at times create imbalances in the market however the retail (as it is called) market is dwarfed by the daily volume of the amounts of institutional trades that pass through the Bank of International Settlements (BIS).
Enter a Place for Retail Forex Traders to Speculate
It is the institutional traders trading mostly on behalf of hedge funds or for their own accounts that account for an estimated 80% of the daily volume of currency trades. This makes trading directly on foreign currency movements a dicey proposition for retail day traders like you and I. This is why another type of trading has emerged as the leading investment of choice for individuals wanting to participate in the foreign currency market: Binary Options.
Major Forex Cross Rates Available
Forex binary option broker / dealers offer small trade makers the opportunity to buy put and call positions on the major cross rates such as Yen/Dollar, Dollar/Euro, Dollar/Pound, Euro/Yen, even Dollar/Swiss Franc is open for trade on the binaries exchange. This market offers the average trader the chance for a fixed high yield return with a payout either hourly or at the end of the day. Trading is fairly simple – as the transactions are denominated in dollars by your forex binary option broker, and simple call or put orders are made with the click of the mouse.