What is the difference between binary options and forex trading?

The main difference between binary options and forex trading lies in their structure, risk, and profit potential. Binary options involve predicting whether an asset’s price will be higher or lower than a set level at a specific time. If the prediction is correct, the trader receives a fixed payout; if incorrect, the investment is lost. In contrast, forex trading involves buying and selling currency pairs, where profits and losses depend on price fluctuations rather than a fixed outcome. While binary options have fixed risk and reward, forex trading offers variable returns, meaning there is no set payout, and both gains and losses can be larger depending on market movements. Additionally, binary options have a fixed expiration time, whereas forex traders can enter and exit positions at any time, allowing for greater flexibility in managing trades.