Currencies are a popular investment class that allow for speculation on price movements, just like bets on other asset classes. Foreign exchange, or forex in short, is a decentralized global market where currency pairs are traded.
Binary options trading is an investment that works more like a prediction that can be either right or wrong, but nowhere in between. An investor bets that a given asset will be above or below a certain point after a fixed amount of time. That time can vary greatly, but it can be as quick a turnaround as 60 seconds.
If the prediction is correct, the investor will recoup his or her investment plus a bonus on top—if they’re wrong, the investor loses the entire amount put into the venture.