Here, at Binary Options South Africa, it is our aim to teach you everything you need to know about binary options, to assist you in picking the right broker through our up-to-date broker reviews, and to inform you about the strategies and tactics to use to help in mitigating against the risks associated with trading them. We make it our mission to ensure that you have a seamless binary options trading EZTrader was founded in and has since offered a safe and licensed trading experience. Their binary options platform and website is available in several different languages including both English and Dutch. EZTrader is a fully licensed binary broker with a license from CySEC. This license includes South Africa /06/06 · Binary Options has seen a major revival since and now after the global Covid epidemic, has become a major way for people to make money by trading the markets. We have partnered with blogger.com, which today stands heads and shoulders above competition in safety and payouts, offering South Africans the best choice in trading and making money online
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Forex and CFDs trading has quickly become one of the most popular ways of trading in global markets, especially when the trading opportunities emerged online.
Online trading platforms are becoming easier to use every day and platform providers do their best to provide a better overview of the entire trading process. Binary Options South Africa puts a lot of effort into providing detailed reviews in order to present the brokers in an objective manner. If you want to find out more about most popular forex and CFDs brokers on the market, make sure to read our article below.
Foreign exchange is an exchange among different currencies on global markets, binary options brokers in south africa. Forex is not a new thing, it has been around ever since the first coins were introduced in BC. However, online forex trading is the relatively new type of trading that managed to establish a solid reputation over the years. Nowadays, forex is the biggest financial market in the world. Average daily trading volume ADTV for forex is binary options brokers in south africa 5 trillion USD, more than any other asset.
The reason why forex is dominating the financial industry is quite simple: money is something everyone uses and everyone needs. You want to sell goods that are produced in Germany, which means you have to import them.
Of course, United States and Germany have two different currencies: USD and EUR. German supplier will be paid in USD, which means they will need to exchange that currency for their local one. This is only one small example of what happens each day on global markets, not only among small business, but private persons and great industries as well.
No wonder forex market reaches such a high volume! Forex trading became popular when it became accessible to a greater number of people. Most people who are interested in any form of online trading, sooner or later encounter forex contracts that are based on currency pairs and the ratio between them. There are many combinations of currency pairs, but keep in mind that not all of them are equally popular or present on the market. Of course, currencies that dominate the forex trading industry are USD, EUR, JPY, CAD, GBP, CHF, AUD etc.
One of the main benefits of forex trading is that it can be done from the comfort of your own home. All you need is a computer, tablet or a smartphone and a good internet connection and you can start trading.
Also, most forex trading platforms are also web-based or have special mobile trading apps which means you can trade whenever and wherever. The Internet is literally over flooded by different guides, eBooks, webinars and videos on how to participate in forex trading. Some of those educational materials oversimplify the entire trading process, while others go in depth and binary options brokers in south africa easily confuse beginners who have no trading background and lack basic understanding of technical and fundamental analysis.
However, forex trading can and should be learned, binary options brokers in south africa, but basically it is predicting the movement of the exchange rate. Right prediction makes money, while wrong prediction causes loss.
The exchange rate for this popular pair is 1. It is important to understand how currency market is never static, it has fluctuations and is moving all the time. For the purpose of this story, we will say that the trader believes that the Euro will grow, and buys EUR for Europe gets affected by some significant changes and good news from monetary banks, so EUR gains in value. It shifts from 1.
The change seems almost insignificant to an average person that is not on foreign exchanges. Still, the trader who bought the euros managed to make 0. If he decided to sell the Euros, binary options brokers in south africa, he would make money. The first currency quoted in a currency pair on forex.
Moreover, it is typically considered the domestic currency or accounting currency. A pair of currencies traded in forex that does not include the U. One foreign currency is traded for another without having to first exchange the currencies into U. The quotation and pricing structure of the currencies traded in the forex market; the value of a currency is determined by its comparison to another currency. The currency pair shows how much of the quote currency is needed to purchase one unit of the base currency.
The second currency quoted in a currency pair in Forex. In a direct quote, the quote currency is the foreign currency. In an indirect quote, the quote currency is the domestic currency. In currency trading you always compare one currency to another so forex is always quoted in pairs. Occasionally authors of currency research will refer to only one half of the currency pair.
For instance, if an article is referring to the Euro EUR trading at 1. dollar USD. The quote example shows traders how much one euro is worth in US dollars.
When buying or selling a currency pair, the action is being performed on the base currency. Thus, the pair trade. dollar is getting stronger. Pips are the smallest price change that a given exchange rate can make. In our example, the movement was 0. Since most major currency pairs are priced to four decimal places, the smallest change is that of the last decimal point.
A common exception is for Japanese yen JPY pairs which are quoted to the second decimal point. Remember these 0,25 that were earned as trading income in our example. Meaning that what was earned in the previous example was 25 pips. This is the way the market expresses movements no matter whether the value is falling or rising. We will continue with our example. The trader made 0.
Still, the trader can use the leverage. Leverage is allowing traders to make more money in their trades binary options brokers in south africa literally serves as a lever that allows them to multiply their profits as they have more money at their disposal.
Leverage is always expressed as a ratio and is based on margin requirements that are always set by the broker, binary options brokers in south africa. Our trader that made 0. Traders must put some effort to understand that leverage is not a free money or a free loan. Also, it is no guarantee that you will profit. Traders who use leverage can also lose money, binary options brokers in south africa. This means that the broker can no longer risk the money that was given to you as a leverage.
A margin call is an amount that needs to be available on the trading account to execute the trade and cover losses that may occur.
Another important term in forex trading is a spread. Traders who just stepped in the world of forex will immediately notice how to buy and sell price are never the same.
The highest price that is set for selling is also called ASK — the asking price, while the highest price someone is ready to pay for the same asset in order to buy it is a BID price. The spread is the difference between the ASK and the BID price. Keep in mind that binary options brokers in south africa bid is always lower than the asking price.
The trader is ready to pay a certain price, 1. This also shows how traders who try to buy and immediately sell will be in a binary options brokers in south africa worse position as they will lose the initial investment, in this case — 4 pips. The spreads are not fixed and can fluctuate depending on the market volatility: it is wider when there is not a lot of liquidity on the market.
Also, the spread is fluctuating during the trading process, so traders should act swiftly and mindfully to take advantage of market movements. Some brokers, both forex and CFDs brokers, will offer fixed spreads to help traders gain more control during the trading process as they have stable costs.
From the moment it appeared on the global market, binary options trading drew a lot of attention from all around the world, South Africa included. For the first time people from all walks of life gained entrance to the world of financial trading which had been, for a long period of time, reserved for a particular group of individuals or firms. To highlight differences between binary options and forex, we have decided to present what are the major differences between binary options and Forex.
The major difference which most traders, in South Africa and around the world, find to be a very appealing aspect of binary options trading over Forex is the fact that they know how much they stand to gain, binary options brokers in south africa, and, more importantly how much they could lose as well. So, limited and defined loss enables traders to know from the very start the maximum loss which can happen when they buy a binary option.
While it is possible to use Stop Loss with Forex trading, that feature demands high discipline from the trader which is sometimes hard to achieve since traders sometimes feel the need to remove this feature if they feel the market is going in the desired direction.
This can lead to more losses than initially expected. On the other hand, those South African traders who opt to do binary options trading have a fixed loss without possibility to lose more. With Forex trading the story is different since high market volatility can lead to complete loss of funds. Yet another difference between binary options and Forex is in the trading speed. Specifically, in the fact that binary options trading allows for extremely short expiry times which can, in fact, be as short as mere 30 seconds.
This is not an option in Forex trading since the market is unlikely to move in a matter of minutes, not to mention seconds. The nature of binary options trading does not require that traders be stuck behind a computer screen day in and day out in order to have a successful trade. Traders can simply place a trade and then wait for the expiry time knowing that the loss, if it happens, is the same as the price of the option.
South Africans can also forgo the constant following of market news which is a necessity in Forex trading if profit is to be made. However, it would not be wise to disregard the power of knowledge as, the more traders know the better they can be in predicting what will happen with a price which can lead to higher profits.
Inspecting both Technical and Fundamental Analysis is also important and can contribute the overall result in trading binary options. Regardless of the trading journey South African traders might select, investing some time in studying the market, data connected to either binary options or Forex as well as training themselves to react rationally instead of emotionally, will aid in binary options brokers in south africa about the desired result, binary options brokers in south africa.
There is no difference between CFD trading in South Africa and other parts of the world. There is an increasing number of South Africans who see an alternative in CFD trading in comparison with traditional approach of online trading.
BEST BINARY OPTIONS BROKERS IN 2020
, time: 12:45WebMoney South Africa �� | WebMoney Withdrawal Guide
Since binary options trading belongs in online industry, security of trading platform should be primary goal of each binary broker. WebMoney Review. WebMoney has become very popular payment method around the world, and binary options South Africa are not excluded 4 rows · In South Africa, trading Binary Options is not illegal and is thus growing in popularity day One of the most popular binary option brokers, 24option does not offer binary trading anymore, and another big name in the industry, binary option broker Banc de Binary, was closed. However, there are still several trustworthy binary brokers that provide binary option trading to traders from South Africa
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