Options Vs Spot Forex

[TradeCat]

If you don't turn 1K into 100K using nothing but guessing on Options and lease seats on at least three exchanges you don't belong on this elite forum.

 

[Turveyd]

If you don't turn 1K into 100K using nothing but guessing on Options and lease seats on at least three exchanges you don't belong on this elite forum.

Baron really should keep the riff raff out, anyone that doesn't claim to be trading at $10,000 per point and has had 2 losses in a row, simply doesnt belong here.

Just made 3.2mil, guess I'll fuel up my Ship up and have it blown by 4pm.

 

[Cswim63]

What, you don't have a captain to do that for you? If he's making you fuel up your own ship, I'd find another captain. You can borrow mine till you find a replacement.

 

[ironchef]

My risk aversion is simply I will never risk more than 2% on a trade and usually if I get 50 pips offered up then I start to close the trade out and leave just a portion on in case a bigger move occurs. I'll never change this as it has worked well for me over the past 12 months and seen me grow my account very consistently from its starting balance.

The use of options is to try and exploit my analysis skills as I am confident in my trading ability and while I don't want that to sound cocky I often can see a level price is reaching too and I think options may suit as an additional profit option.

In my opinion, as a trader, your risk aversion is a virtue rather than a curse.

If you have good analytical skills, I suggest you read up on the Black Scholes options pricing model to get a better understanding of how they are priced and some of the subtleties of option pricing. Pairing that with your knowledge of Forex could be a winning formula.

Good luck.