Options

Only a handful of retail trading platforms currently offer the ability to trade FX options. If you have not traded options previously, it would be wise to test your skills extensively on a demo platform before committing real money. While the following information provides a broad outline of this segment of the market, successful trading of FX options really does require specialist knowledge and skills which will require more extensive study.

On some trading platforms you can trade options over currency pairs just as you may already be doing with equities or futures. Many of the option types that we examine below will be familiar to equities and futures traders; however, in addition to the usual types of options there are a few more exotic, currency-specific options that we will briefly mention as well. Firstly, though, we’ll deal with some of the terminology that surrounds options.