Forex Options - an alternative way to increase the deposit

About independent work on Forex to every investor in our time is well known. Many of these earn a living by using various trading systems in trading, connecting advisers and listening to the trading signals of experienced players. Those who understand the excellent opportunities for investing in the foreign exchange market, but can not do it themselves because of lack of time, experience or knowledge, use a parm account or some investment program of their broker. However, this does not end all the possibilities of trading in Forex.

There is another, so far little-known way to profit from fluctuations in the value of a currency - these are Forex options. This variant of earnings has not yet gained among traders great popularity, but nevertheless, one must know about it in order to use it wisely at a convenient opportunity and not miss the chance to significantly increase your deposit.

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

What are options Forex?

An investor who has decided to use this financial instrument, after acquiring it, is entitled in the future to sell or buy a certain currency at a predetermined rate. For convenience and clarity, let's take an example: suppose the EUR / USD quotation reached the level of 1.3190. Trader, based on technical and fundamental analysis, comes to the conclusion that by the time the trading session ends, the current rate will decrease and acquire a call option for $ 100. In 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 1.8, so the trader will sell his option for $ 180 and earn an income of $ 80.

Why use the Forex options?

In ordinary trading, we enter the market at the most convenient moment by setting the estimated stop-loss and take-profit at such a level that the revenue of the operation is sufficient in comparison with the inevitably arising risks. In this case, for a good income you need to wait until the price makes a strong enough movement. At the same time, forex options allow you to earn decently even if the price moves in the prospective direction by only a few points.

When buying an option, the trader pre-sets all the parameters on the broker's website. When submitting an application, an automatic settlement is made, and the trader sees the estimated profit. This allows you to again weigh the pros and cons before confirming the application and then buy the option or revise the terms of the operation.

What is the difference between binary options Forex?

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, the second is not. Using a binary option, you can either get a specific profit or stay with nothing. You say too risky? However, the profit here is impressive: from 70% to 85% for each transaction, while the deal time 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 in the next 15 minutes it will turn in the opposite direction. And even if the price for the duration of the binary option changes in the right direction by just one point - then in this case there will be all the same 70 - 85% of the income. That is, the profit here is strictly fixed and does not depend on the number of points passed by quotation.

Thus, options are, under certain conditions, a very interesting type of investment. Some might not like them, but someone will be allowed to increase their deposit several times. In any case, every trader will want to know about this possibility.