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The Biggest Misunderstanding in Forex and Options Trading.

The Biggest Misunderstanding in Forex and Options Trading.

August 21, 2017

Misunderstanding in Forex and Options Trading. When the traders start trading Options, they are not capable of making a profit well. They are able to predict Forex market well, although they fail to be sure in Options trading. Even though scalper traders are not able to earn a profit in Options trading, they predict market […]

Misunderstanding in Forex and Options Trading.

When the traders start trading Options, they are not capable of making a profit well. They are able to predict Forex market well, although they fail to be sure in Options trading.

Even though scalper traders are not able to earn a profit in Options trading, they predict market correctly in spite of avoiding earning profit.

The important factor in trading Options is the time when you are scalper or long-term trader in the traditional Forex Market. Your position is open for a long time till the market touch your stop loss or make a profit. Yet your time is a limitation in trading Options.

Provided you are a short-time scalper in the Forex market, you will open a position. It will go to 1 or 2 pips profit. Your profit will be touched and you will earn your profit. However, in Options trading perhaps the market will come back and you lose! Just look at the following example:

If you look at the above picture carefully, you will understand my purpose about the most important difference between Forex market and Options trading.  Most of the Forex traders will ignore this factor.

Now you understand that why you are not able to earn a profit in trading Options. It seems to be easier than Forex market but in reality, everything is different.

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Comments

  1. Ana Chelsvo Tuesday 30 May 2017 08:58
    Ana Chelsvo

    I should say that this article open my eyes about options trading thank you