BitBoy PREDICTED Bear Market! (London Real Interview)

Forex is a fruitful business if you do it the right way. Most of the traders do not learn the basic concepts and hence lose money despite their consistency and persistence. Most of these concepts are easy to understand and one can find a lot of free material on the internet about most of these concepts. However, drawdown is one such concept that is hard to master and you will not find a lot of free quality material about it on the internet.

Following our previous discussion on call option in forex options trading, now let’s discuss about put option. In forex options contract, put option gives a right, but not an obligation, to a trader to sell a certain currency at a certain price within a certain time period. When you have a nice view on a currency, let’s say GBP/USD, you are 90% sure that GBP/USD will go south within the next 14 trading days, you can purchase a right to sell GBP/USD from someone who sells put option.

Forex option trading has something in common with forex cash trading, that is when a buyer buys call option then simultaneously he/she buys put option. You need to know some common terms used in forex derivatives trading such as call option, this is a term for purchasing a right to buy an asset at a certain price and time period. And put option is a term for a right to sell an option.

Forex is growing day by day. It offers huge rewards to those who are willing to work hard. It pays you for your consistency and understanding of the market.

The Forex market is very volatile at times. when there is 3 trillion dollars exchanging hands in any given trading day its easy to see why the market can move so much. When you trade with your money compared to companies or huge banks your simple $250 – 10,000 is equal out to less than a single cent in comparison of their $100,000+ trades.