What are Your Options Regarding Forex Options Brokers?
The forex market is one of the most widespread and most active markets in the world with ever changing trends. For a forex trader, it is quite hard to keep track of the changing trends and to analyze all different sets of currency pairs to find which one is the most profitable one and which pair will be taking the trade towards a loss. To find out which pair is best to trade and which time frame will suit the trader is the toughest job.
Forex Options Brokers provide guidance and help to the traders to find the cleanest pair of currencies with a good time frame showing a nice trend. By following the best trend, the chances of winning or finding profitable trades increases by a buck load.
There are generally 2 types of Forex option brokers:
• Those who offer online forex trading platforms
• Those who offer on-call (telephone) forex trading option
There are some brokers which provide both the facilities at the same time as well.
Forex options brokers provide various different forex options contracts to the traders including Plain Vanilla, Exotic and Betting Forex Options on their platforms.
The Plain Vanilla option is a standard option with a given strike price and expiration date while Exotic option refers to currencies that are less popular in the trading world as compared to major currencies. Under the Exotic options category, there are numerous options such as Asian options, Barrier options, Baskets, Binary options, Lookback options, Compound options, spread options and the list goes on and on. These are usually tailored to a specific trader’s needs and can evolve over time. The transactions for exotic options are generally made over the telephone.
A number of firms which are either off-shore entities or located in remote locations offer Betting option but are not trusted much and considered a risky option.
The top 3 Forex option broker platforms are:
III. IG Markets
All of these are the downloadable trading platform which allows you to choose the best-suited plans and contracts. They provide you with a little more than traditional forex trading options. You can choose from a combination of different options and track down your progress with special help and guidance provided to you 24/7 using these platforms.
It is important to note that the person who holds a contract with these options brokers does not really become an owner of anything but the contract allows him to make a purchase or trade something at a given time and price in the future.