Pt3, Jason Ayres: Trend Identification For FX Option Trading Decisions

Jason Ayres of Optionsource.net teaches you simple techniques that can be used to identify the reversal or continuation of trends in the ISE FX Options Pair Values. Jason will also cover how to apply basic FX Option strategies to potentially capitalize on your outlook.

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Technorati Tags: Ayres, Decisions, identification, Jason, Option, Trading, Trend

International Finance: Where to find info on Currency future and option contracts??? Please help.?

I am clueless on international finance and need a website for the following questions. I would also greatly appreciate it if you explained how to find the information on the website. I have been to sites such as Forex.com but had no idea how to find the following information. Thanks for your help!

CURRENCY FUTURES:
a. currencies available
b. size of each contract
c. margin requirements
d. delievery dates available

CURRENCY OPTIONS:
a. currencies available
b. size of each contract
c. expiration dates available

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Technorati Tags: Contracts, Currency, Finance, Find, Future, help, info, International, Option, Please

Forex Binary Option Broker Paves New Ground for Quick Returns

A novel form of options trading done by a new type of forex binary option broker has opened the high yield, fast paced world of forex trading to retail investors.  A low cost forex binary option broker has given day traders with low capital the ability to trade and get the same kinds of high, short term returns as the highly capitalized leveraged forex traders.

Big Institutions Squeeze Out the Small Forex Trader
Foreign exchange is an extremely fast paced investment market, in which daily investor transactions are expected to top $110 billion dollars per day on the open exchanges. One would think the vast amounts of individual currency changing hands can at times create imbalances in the market however the retail (as it is called) market is dwarfed by the daily volume of the amounts of institutional trades that pass through the Bank of International Settlements (BIS).

Enter a Place for Retail Forex Traders to Speculate
It is the institutional traders trading mostly on behalf of hedge funds or for their own accounts that account for an estimated 80% of the daily volume of currency trades. This makes trading directly on foreign currency movements a dicey proposition for retail day traders like you and I. This is why another type of trading has emerged as the leading investment of choice for individuals wanting to participate in the foreign currency market: Binary Options.

Major Forex Cross Rates Available
Forex binary option broker / dealers offer small trade makers the opportunity to buy put and call positions on the major cross rates such as Yen/Dollar, Dollar/Euro, Dollar/Pound, Euro/Yen, even Dollar/Swiss Franc is open for trade on the binaries exchange. This market offers the average trader the chance for a fixed high yield return with a payout either hourly or at the end of the day. Trading is fairly simple – as the transactions are denominated in dollars by your forex binary option broker, and simple call or put orders are made with the click of the mouse.

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Technorati Tags: Binary, Broker, forex, Ground, Option, Paves, Quick, Returns

What Is Forex Option And Its Types?

Forex options are defined as securities that allow option investors to realize profits without the need to buy the underlying currency pair. With the use of leverage, forex options may spell huge profits for the trader. It however comes alongside some risks. On the other hand, the currency options may be held with the underlying currency pair which will result to earnings but minimize the risk. Sometimes, the potential for earning may have to be limited to be able to also limit the downside in the transaction. In forex option trading, the risk of the option writer is greater. Due to this, most option brokers require higher capital on the part of the traders if they intend to sell the options contract. Likewise, not all forex traders offer option contracts to traders for the same reason. It would be best to try to find a good broker that would allow traders to do options trading along with other traditional positions.

Forex option trading has two types, traditional and STOP options. The first one is what is commonly called the “put/call option”. In forex trading, “put” is synonymous to “sell” and “call” is synonymous to “buy”. The traditional option allows for the trader to either buy/call or sell/put options which would give him the right to exercise said option at a certain date and price previously agreed upon by the option buyer and the option seller. The trader is in no obligation to exercise the said option when the time comes if he refused to do so but will have to pay for the right to the option. The said payment is called premium. If the movement of the currency pair goes to the advantage of the trader, he may exercise his right and buy/sell the pair. He may then sell or buy the pair at a price that will earn him profit. If he decides not to use his option, it expires worthless. The only loss on the part of the trader is the minimal amount of the premium.

SPOT (Single Payment Options Trading) requires a higher premium on the trader though it is simpler to set and carry out. What happens in a SPOT is that a trader predicts a currency pair scenario and quotes a premium. The scenario would include an agreed upon price and expiry date. If the trader buys the SPOT option and his forecasted scenario happens, his option becomes spot cash.

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Technorati Tags: forex, Option, Types