Broker to Trading

These brokers provide trading platforms which allow the trader to trade FX Options CFDs on an CFD online trading platform. The minimum amount for trading options can be higher than the minimum deposit for a trading account. The brokers offer CFD trading thus the trader does not buy or sell the option itself rather they are trading a CFD (Contract For Difference) which is referenced to the value of the option.

Options come in different types, but the basic Vanilla option when bought gives the trader the right to buy (Call) or sell (Put) a Forex pair at a specified data in the future (the Expiry) at a particular price known as the Strike Price. The trader pays a price for the option known formally as the Premium.

When buying a Call option, the trader is speculating that the price of the Forex pair will rise above the strike price, as the option will be worthless if the price of the Forex pair is at or below the strike price since the trader can buy the Forex pair at the same or a lower spot price. In fact the trader is speculating that the rise in value of the Forex pair will more than make up for the cost of the option. Similarly, when buying a Put option, the trader is speculating that the price of the Forex pair will go usefully lower than the strike price. The brokers in the table offer Vanilla options trading of Forex pairs.

Forex pairs move in complex way tracing out patterns as they move in a given direction and retrace from that direction with reducing and increasing volatility, influenced by a wide range of factors. Options trading can provide a potential tool to speculate on Forex pair price movement in relation to a barrier (the strike price).

The trader can trade FX Options on the online trading platforms provided by the broker. This allows the trader to access the range of trading tools available to trade other CFDs, such as charting, technical indicators and graphical tools.