Options Trading has a reputation for being extremely risky, but this reputation is in large part undeserved. True, option trades are extremely risky – even dangerous if you have no idea what you are doing. However, that is true of all forms of offline or online trading, and trading in options is no exception.
While options [...]
When you start trading in the Foreign Exchange market, you will notice that the prices for either buying or selling a currency pair always come in a pair of price quotes. One is called the ‘Bid’ (or Sell) and the other is called the ‘Ask’ (or Buy). You will notice the same in any other [...]
To read a forex price quote consisting of two different currencies you have to note that the first currency is known as the base currency while the second currency is called the quote currency. Another point of note is that the first currency value is always 1 (one).
To further illustrate, the price quote or [...]
Usually currency or forex options offer you unlimited profits with limited risks, which is a good thing except that there is a 90% chance that the options will expire and become worthless. But despite the risk, which a lot of forex traders are afraid of, there is still a chance that an options seller [...]
What is a Forex Call Option?
A forex option gives you the right but not the obligation to buy or sell a currency pair at a certain price on a certain date. The certain price in this case is called the ’strike price’. That is the option gives you the flexibility of choosing where you [...]
In the last article on “9 Reasons on Why You Must Trade Forex (Part 1 of 2)” You have understand the:
1. Round the clock trading 2. No need to choose from too many counters 3. Liquidity 4. Good Leverage
Next you will understand more on why you must trade forex.
5. No Brokerage fee or [...]
While many traders like to trade forex. Currency trading options if used correctly, can give you two great advantages that can lead you to long term trading success. Let’s take a look at them… Here we will look at how to buy options correctly and take advantage of limited risk and unlimited gains and how [...]