What is better out of trading ordinary spot forex or currency options?
I am 18 years old and I am considering trading currencies as a home based business. I’ve had practice with ordinary spot forex and find it okay. I want to know what is better if I was to trade ordinary spot forex or currency options? Which is better, and which has the best chance of you becoming successful and becoming a millionaire out of?
July 1st, 2010 at 9:24 pm
Unless you are a professional you are going to lose your money quick. This is no place for amateur.
July 1st, 2010 at 9:57 pm
hi,
forex is 100 times bigger then regular stocks.it produced lot of millionaires in the world.i lost job and strated fx trading as part time and now it became full time work to me.my advise is practice as much as u can before u enter real trading.i think u have done nice practice.currency options is good but use good trading platform.i use etr and they have nice visual system with 24 hour support team.here u can find best trading platforms that most traders use
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forexplatformslist.com
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good luck
July 1st, 2010 at 10:14 pm
Use currency options as a hedge for your spot trades. Don’t use it for pure speculation. Understand more about options before you try.
July 1st, 2010 at 10:29 pm
It really depends if you are dealing with long term or short term trades. IF your dealing with the 10min charts or 1 hour charts there is no point in buying forex options. If you want to learn more about options I would go to http://www.allmarketpicks.webs.com . It helped a lot.
July 1st, 2010 at 10:49 pm
Options are good for hedging and for longer term.
July 1st, 2010 at 11:47 pm
Currencies tend to trend long term and be volatile in the short term.
Have a look at this chart from finviz & see if you agree.
http://www.finviz.com/forex_charts.ashx?t=ALL&tf=w1
I only trade currencies using long term call options. Why?
1. I have a known level of exposure (I can’t loose any more than I put in)
2. I feel its lower risk, as I am trend trading – trends can also revert.
3. It is definitely lower risk than spot trading, as I am not trading on margin – I can still loose everything though.
4. I’ve had a few friends take up currency trading (spot), do quite well for a bit then have a bad run, only one out of 6 is still in the game.
5. It suits my personality. If you can handle the swings, spot trading might be the thing for you.
Open up a demo account and see how you go.
Give your self time to learn before putting your own money down – once its gone, its gone.