For day traders, options make more sense than Forex. Daily changes of more than 1 percent are a rarity, although world events can trigger higher change percentages. In fact, it makes no sense to trade Forex without high leverage, but that is also very risky. You can day trade or hold the currencies for a longer period — sometimes months.
That also means options are not limited to day trading, although you can certainly work with options with expiration dates within minutes or hours. Option trading involves two types: A put is the opposite — the right to sell stock at a fixed strike price by a specific date.
Option buyers take long positions, while the sellers take short positions. Call buyers plan to make money when underlying share prices rise. A put purchaser makes money when the underlying share prices fall. Sharp option traders can profit in up or down markets. The bottom line is whether or not the option is in or out of the money when its expiration date occurs.
While an options value ceases upon expiration, for practical purposes traders almost never allow an option to expire. The decision to trade in Forex vs.
You can learn and get started with options trading more quickly. Trading options is just downright more interesting than Forex trading. SureTrader offers you constant access to licensed professional trading experts via phone , chat or email.
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