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Forex Options - You don't know what you're missing

Are you some new treaders who almost giving up because u get lost when you trade??
Hey guess what?? Maybe you forgetting something.....

When debating the best subject for our next course we asked ourselves what is the most important things new traders should learn? I think the answer to that is that they need to know what the professionals know. One of the things that professionals know and have been using for many years are options.

When debating the best subject for a new course we asked ourselves: “What are the most important things new traders should learn?”

The answer we came up with was simple: The same things the professionals know. One of the major strategies used successfully by professional traders, is often overlooked by retail traders. That strategy is Options.

Options have been available to currency futures traders (and traders in just about every other market) for years. However, they have only been available to retail forex spot traders recently. Options are not marketed or offered as widely by dealers, as they are more complicated than buying and selling lots of pairs. However, once understood, options are an invaluable addition to your portfolio.

What you will learn in this course:

- Options are a valuable tool for forex traders
- Calls and puts are the simplest options trades
- Calls or puts can be used to speculate on a forex pair
- Long options can be used to offset risk in a forex position
- Selling options can develop higher probability trades

When debating the best subject for a new course we asked ourselves: “What are the most important things new traders should learn?”

The answer we came up with was simple: The same things the professionals know. One of the major strategies used successfully by professional traders, is often overlooked by retail traders. That strategy is Options.

Options have been available to currency futures traders (and traders in just about every other market) for years. However, they have only been available to retail forex spot traders recently. Options are not marketed or offered as widely by dealers, as they are more complicated than buying and selling lots of pairs. However, once understood, options are an invaluable addition to your portfolio.

Who are options for?

There are two types of traders that can take advantage of options. Chances are pretty good you will find that you belong to one of these two groups.

- Speculators:
Options can be used by speculators who are taking advantage of a rise or decline in an exchange rate. They have the benefits of leverage, risk control and liquidity.

- Investors looking for more flexible risk control:
They are also an important tool for traders looking to offset their risk exposure to price shocks in the market. In certain circumstances they can be used in place of stop losses and can help increase the odds of having a successful trade outcome.

How does an option work?

There are two types of option contracts – calls and puts. In this first lesson we will talk about call options in detail. You will learn why a trader would buy them, what their characteristics are and one of the simplest strategies you can use to put them to work.

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