DIFFERENCE BETWEEN FOREX AND OPTIONS

FOREX VS OPTIONS | POWER OF FOREX | VOLUME OF FOREX AND OPTIONS | FOREX TRADING

Course: [ Top Trading Strategy ]

Differences between Forex and Options. Many differences are there in forex vs options eg: market hours, slippage and leverage etc.

Differences between Forex and Options

 

                                            Forex

                                       Options

Largest and most liquid market in the world

Liquidity depends on underlying asset & expiry date

24-hour trading action for 5.5 days a week

Not 24-hour. Varying trading hours based on the exchanges

Easier to calculate stop beforehand

Difficult and unreliable to place stops on underlying asset

Minimum slippage and order errors

More room for slippage due to lack of liquidity

100:1 leverage on standard-sized accounts

Leverage depends on the type of option transaction you want to engage in. Selling Naked Calls or Puts generally requires a huge amount of margin

 

 

 

Top Trading Strategy : Tag: Top Trading Strategy, Forex : FOREX VS OPTIONS | POWER OF FOREX | VOLUME OF FOREX AND OPTIONS | FOREX TRADING - DIFFERENCE BETWEEN FOREX AND OPTIONS