Currency Option Trading | Forex Options Trading

On June 18, 2010, in Forex Trading Strategies, by David

Forex options trading works very similar to options in the stock market. You buy an option from a seller with a set price and expiration date. In the forex market you might buy an option for USD/CAD at 1.05 to expire in 30 days. If the USD/CAD breaks to 1.07, then you would exercise the option to buy at 1.05. You would then sell for 1.07 for a nice profit. If it doesn’t break out of 1.05 by the expiry date, than the only thing you lose is the premium.