Forex options :

Also Forexgen Forex options give investors another tool with which to limit losses and increase profits, they are particularly popular at periods of economic reporting. Transactions in options on FOREX carry a high degree of risk.

In the Forex market purchasers and sellers of options should familiarize themselves with the type of option (i.e. put or call) which they contemplate trading and the associated risks.

You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a leveraged position, the purchaser will acquire a FOREX open position with associated liabilities for margin.