Forex Options - an alternative way to increase the deposit

About independent work on Forex for everyoneinvestor in our time is well known. Many of these earn their living using various trading systems in trading, connecting advisors and listening to the trading signals of experienced players. Those who understand the excellent opportunities for investing in the foreign exchange market, but cannot do this on their own due to lack of time, experience or knowledge, use a PAM account or any investment program of their broker. However, this is not all the opportunities for Forex trading.

There is another, so far little known.The way to benefit from fluctuations in the value of a currency is Forex options. This option of earning has not yet gained great popularity among traders, but nevertheless, you need to be aware of it in order to make good use of the opportunity and not miss the chance to significantly increase your deposit.

Forex options trading became available.to an ordinary trader only recently - before that, only corporations and large banks had such an opportunity. Now, even the smallest amount of $ 1 will be enough to try such a financial instrument in its practice.

What are Forex Options?

An investor who decided to take advantage of itfinancial instrument, after its acquisition gets the right in the future to sell or buy a certain currency at a predetermined rate. For convenience and clarity, let us take an example: suppose that the EUR / USD quote reached the level of 1.3190. The trader, on the basis of technical and fundamental analysis, comes to the conclusion that by the time of the end of the trading session, the current exchange rate will decline and acquire a fall option for $ 100. In the case of a correct forecast, this trader will be able to realize the option at a more favorable price, equal to its value multiplied by the coefficient established by the broker. In our example, it is equal to 1.8, so the trader will sell his option for $ 180 and receive an income of $ 80.

Why use Forex options?

In normal trade, we are at the most convenient moment.we enter the market by placing calculated stop loss and take profit at such a level that the income of the operation is sufficient compared to the inevitable risks. At the same time, for a good income you need to wait until the price makes a fairly strong movement. At the same time, Forex options allow you to earn decently even in the case when the price moves in the intended direction by only a few points.

When buying an option, the trader has previouslyputs on the broker’s website all its parameters. When applying, an automatic calculation takes place, and the trader sees the estimated profit. This allows, before confirming the application, once again weigh the pros and cons and then purchase an option or revise the terms of the operation.

What is the difference between binary forex options?

This type of contract can be described as"all or nothing". The word “binary” means that this option consists of 2 parts - the first profit is accrued, and the second is not. Using a binary option, you can either make a specific profit or be left with nothing. You say too risky? However, the profit here is impressive: from 70% to 85% for each operation, despite the fact that the time of the transaction can be limited to 1 minute. If some strong news came out and as a result a rapid price movement began, it is unlikely that it will turn in the other direction in the next 15 minutes. And even if the price during the time of the binary option changes in the right direction by just one point, then in this case there will still be the same 70 - 85% of income. That is, the profit here is strictly fixed and does not depend on the number of points passed by the quote.

Thus, options are subject to certainconditions very interesting type of attachment. Some people may not like them, and some will be allowed to increase their deposit many times. In any case, every trader will know about this opportunity.