Can someone help me with Forex Futures/Options?
Here's how I "think" they work:
1) I decide on a currency pair and a future direction
2) I establish a price target based on price projections, etc.
3) I buy an option to buy/sell at that price at a specific date
4) I get charged a fee for that option
I know that may be oversimplified ... but is that how it works?
Other questions I have:
a) Who do you buy options from? same brokers?
b) What do they charge as fees (pips?)
c) Why would someone position trade if they could just buy a future?
Thanks in advance ... great forum, learning a lot.
Cheers!
- Chris
Here's how I "think" they work:
1) I decide on a currency pair and a future direction
2) I establish a price target based on price projections, etc.
3) I buy an option to buy/sell at that price at a specific date
4) I get charged a fee for that option
I know that may be oversimplified ... but is that how it works?
Other questions I have:
a) Who do you buy options from? same brokers?
b) What do they charge as fees (pips?)
c) Why would someone position trade if they could just buy a future?
Thanks in advance ... great forum, learning a lot.
Cheers!
- Chris