Forex Options

Trading FX options can be a great way to speculate on currency pairs as well as a tool to take some risk out of your portfolio. It gives you many techniques and "options" as you manage a currency portfolio. Although there are not a lot of analysts are talking about them, option volume is growing every month more and more traders are getting into that market.

Since we started talking about them we have been getting some common questions time about what FX options are and how they work.

1. What if my dealer doesn't offer options?

2. What is the difference/advantages of FX options vs. currency futures or futures options?

3. What's the difference between the two types of options (calls and puts?)

Usually these are the same questions over and over again so I wanted to record an answer to these in today's video. Once you have some of the basics down and have paper traded them a few times you will agree this is a great way to make some profits in the forex.