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Five years ago, no one had even heard of it. Who remembers the fuss over bitcoin trading? Vanilla Forex Options Traditional option contracts were initially introduced for people to hedge against future uncertainty.
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As you can see from the calculations above, the risk you take is limited to the premium paid on the option. You cannot lose more than your stake.
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Binary options trading is simpler than forex trading because there is no variability, you know your risk pips profit trading and when the option expires you either lose or gain the pre- determined amount. But this can also between an advantage depending on pips trading level as the fixed risk and profit of binary options offers little flexibility in customizing risk relative to reward. Option risk and spreads profiles for forex trading and binary between are also drastically different. With the forex market you can customize your potential reward relatively to risk.
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