I have been testing out an Options Trade on a currency pair in my demo account. I’m a newbie (started this week, plan to go-live in Jan '08), and I don’t fully understand the Options Trade.
I have had a look at the ‘school’ here and couldn’t find any info. about it. Aren’t Options better than Spot because you are only risking your premium?
Anyway, can anyone point out a good resource to learn about Options Trade.
If you’re lookin for an intro to trading options there’s no better place to start looking than National Futures Association’s website.
National Futures Association | Investor Services
I’d also advise you to check out the CME or CBOT’s websites for specific primers on currency options, etc. But please start at the NFA, they have other publications that will prepare your for this business.
good luck
If you’ve only just started in forex, I would hold off on options for a while. Better to get a feel for the underlying market than jump right in to derivatives.
As for options being better than spot, you can’t make that kind of absolute statement. Under the right circumstances they can be when used correctly. A great many people think they are trading options but with their approach end up just gambling.