How do Foreign Currency Options Work?

Options trading and all of its advantages can be applied to stocks, commodities, futures and foreign currency trading. How do foreign currency options work and how can you make money in Forex options trading?
Foreign Currency Options
Foreign currency options trading follows the same rules and tactics as stock options trading and commodity [...]

Drachma Options Trading

If things go from bad to worse with Greece they could revert to the Drachma and then we would see drachma options trading in the Forex markets! How did this come to be? When the 2008 Great Recession started the Europeans followed the same path that the USA did, in the early [...]

Forex Option

What are the advantages of trading a Forex option instead of directly trading a currency? In general, option trading helps to hedge risk and also gives the trader a degree of leverage not available when buying or selling currencies.
Hedging Risk with a Forex Option
When a trader expects a currency to go up [...]

Buy Cell Tower Leases

A potentially very profitable business venture is to buy cell tower leases. Cell phones are part and parcel of everyday life. The relay points in the cell phone network, the base receiver stations, are essential to smooth functioning of the mobile phone network. These base receiver stations are located at strategically [...]

Trading Compound Options

An options trading style similar to the Russian dolls that nest inside one another is trading compound options. Trading compound options is trading an option on an option. In trading compound options there are two exercise dates. As with trading European style stock options the first contract is only exercised [...]

Stock and Forex Options

As the US economy shows signs of a sustained recovery, debt concerns heighten in the European Union. During the last year both stock and Forex options provided speculators with a means of profiting from the volatility inherent in the post recession economic world. International businesses, that typically use options to hedge currency risk, continue to [...]

Yuan Options Trading

Western news sources quote the Shanghai Daily as saying that the Chinese government will soon allow Yuan options trading within China. Because hedging foreign currencies is a common and effective means of reducing currency risk in international business one can expect to see Chinese companies taking advantage of Yuan options trading in China when it [...]

Is Trading Currency Options Risky?

Is trading currency options risky? If you assume that trading foreign exchange options is easy and approach it that way then, yes, it is risky. If you prepare yourself and learn the trade then making a living trading options on currencies is absolutely possible. The first thing to remember when posing [...]

How to Trade the Forex Market Using Binary Options

It is no secret that the Forex market can be a very profitable place to be if you want to make money by trading currencies.
However, it is also no secret that achieving consistency within the Forex market requires a lot of preparation (you need education and reliable trading tools) because not only you need to [...]

Forex Online Option Trading – Currency Trading Strategies

Forex online option trading was introduced for investors wanting to deal in world currencies. It was brought into effect by the Philadelphia exchange, and the options were traded in the similar fashion as any other option.
The reason for introducing this trading system was to lessen the burden and risk of trading currencies through Forex market makers [...]

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