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Using options on fx trading profit


Guest oilfxpro

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Guest oilfxpro

Options help traders benefit from the movement of market price.

 

Market timing is difficult

When you see a trading opportunity, the price may not go to your direction, for the next week or immediately .For cash traders, they keep a stop loss which can get taken out.Options allow you to hold your positions for weeks and months, without a stop loss.The cost of the options is deducted from profits, if trade fails you lose the cost of the options.

 

What Happens When You Try to Time the Market?

 

I can show you hundreds of examples why market timing screws up trades.

 

http://www.trade2win.com/boards/educational-resources/221422-what-happens-when-you-try-time-market-7...

 

I have seen an opportunity on eur usd .I have purchased the 11900 put expiring on the 19 th January.I have 10 days to be right , if price ends up higher I will lose.Options can reduce short term psychological handicap of the human mind in trading.

 

In my previous opportunity, My position was taken out twice, now the price has broken down.Trading without an option has resulted in losses, if I had bought an option, it is possible I might be  in profit on that opportunity.

 

Here is the previous opportunity

 

https://community.ig.com/t5/FX-and-Cryptocurrency/EUR-USD-idea/m-p/18504#M2353

 

Professional Currency trading system

 

 

https://profitabletraders.wordpress.com/professional-currency-trading-system/

 

euro usd options.jpgeur usd opt.jpg

 

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Guest oilfxpro

I am independent trader .

 

Here is benefit of options , if price goes against , I know my risk.Here in the image, the big bar would have knocked my stops.

 

Successful traders manage risk, you can control how much you can lose.

 

Professionals manage risk

Professionals focus on limiting risk and protecting their capital. Amateurs focus on how much money they can make.

 

https://profitabletraders.wordpress.com/professionals-manage-risk/

 

option.jpg

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