What are the options?
In fact, Forex options are contracts to buy or sell an asset at an agreed-upon fixed price. The contract can be sold at any time, the cost can be as original, and below. Main parameters of the transaction determines the Exchange (broker). Strict compliance with the requirements of the contracts concluded on the stock exchange performed by specialized staff..
What about, who uses them and how it is beneficial to read below.
Where are Forex options
Since Forex involves the right of the buyer to make an exchange of one currency for another at a clearly committed rate, this can be beneficial when you need to hedge risks. This is a good option for exporters and importers wishing to prevent the currency risks associated with changes in exchange rates in an undesirable way. The regular use of traders. with a speculative purpose.
Forex options Forex trading can be divided into classical and exotic: co l (call-mean purchase, profit is possible with the growth of the cost of an asset) and put (put-sell, profits can be implied when the asset falls in price), as well as European and American about. we're going to talk about the classic.
There are also the so-called Forex binary options, which are an alternative to simple monetary market of spot. Their peculiarity is that the trader is known beforehand the potential payment under the contract.
The benefits of using Forex options
An option trader, trading on the Forex market, may have certain advantages over other players who are trading the foreign exchange market or Forex traders who do not use the.
For example, using the purchase after the release of important news, the trader will not be loss in the case of a stop-loss at a classical trading. In fact, the price can rip stop-loss, and then turn around and go up. In the case of option trading trader has received a clear advantage-it has no losses because of stop-loss and slippage rates when buying. After the sale of the trader is your profit.
If you compare the Forex with stock, then on the currency market have higher liquidity and is a great choice. As a rule, different exchange offer on. with deadlines of between one month and more, while Forex we may use on of a few days.
The main advantage is the ability to profit from the weakening/strengthening of the value of the asset with the level of risk that is known in advance. The second advantage is the opportunity to begin earning with a small deposit. The cost of buying the cheaper the purchase/sale of real currency.
Important options trading Forex-trader has more "space" for maneuver, using known or inventing new developed strategy (relevant for both flat and trend of currency pairs). Also it's worth noting that the ability to manage risk with wider than normal stop orders when trading currencies.
Most of trade is carried out by professional traders, skillfully kombiniruûŝimi her and normal trade currency pairs. Therefore, when accessing the statistics you can sometimes observe the pattern of trade is unprofitable. In fact it is only part of the picture is a professional trader received a loss of profit and the market spot. A total of trader in the black.
Professionals know that the tendency of prices of selected currency pairs can be false, unlike the dynamics option awards, which are more accurate and allow you to determine the completion of a particular market phase. The market is wrong about rarely. price level, which is an asset, and in what price range will trade the asset within a specified period of time.
The undeniable fact is that securities prices (prices) should be about, not the other way around, as confirmed by many studies in this field.
It's worth noting that among Forex brokers, trading only in InstaForex, which provide the service binary intraday currency options.
To sum it up. Forex options-professional tool for traders wishing to reduce trading risks and improve the quality of their trade, increase profits. Merchants, by the way, are considered more professional traders than normal currency speculators. The minimum deposit to start, a wide range of trading strategies and more-the benefits of using this option.
How to make a calculation of the lot?
Features of dejtredinga in the Forex market