With their straightforward and intuitive trading platform, everyone can trade forex options the easy way with EasyMarkets.
An option gives you the right (but not the obligation) to trade a currency, at a rate and amount you choose, at a set date in the future. As a trader, you can choose to buy and hold an option until it expires, or sell it back early, if it will give you your desired profit early. (more info)
Forex options, also known as Vanilla Options, allow you to speculate on the market, or hedge any exchange rate risk. EasyForex options are cash based which means that on expiry, you receive a cash profit rather than an open position in your account.
- Experience the simplest options platform in the industry
- Customise your options exactly the way you want – choose your strike price, expiry date and deal amount
- Choose a platform mode to suit your knowledge and level of experience
- Trade several options within a strategy with a single click and receive a discount
- Hedge your exchange rate risk or your forex trades
- Join the buzz of our strategies marketplace and trade others’ professional strategies
- View payout scenarios in a table and a graph before making your trading decision
Step into the future of trading and trade forex options the easy way!
What are Vanilla Options?
Vanilla options are a derivative to trade the market and speculate on a variety of market characteristics. Examples are: future exchange rates, price volatility. Buying an options means that you think the value will increase. Selling an options means that you think that the price of the underlying asset is going down.
Easy-Forex offer forex options. These options give you the opportunity to speculate on the value of a currency pair. The forex options are vanilla options in this case.
Vanilla Options are the most basic variant of options trading. The vanilla option is either a buy option or a put option. There is a standard expiry date and a strike price. These contracts contain no unusual provisions and are also called plain vanilla option.
A Vanilla Option gives the trader the right, but not the obligation, to buy or sell an underlying asset at a certain price, the option strike price. The trader can not lose more than the initial investment. Just like with Binary Options trading.
Difference between vanilla options and binary options
Vanilla options look a little bit like binary options. But there are a few differences.
- In the money – Vanilla options can only bring you a profit when the value of the asset outrankes the strike price. With binary options only the direction is relevant: above or below tha binary option strike price.
- Payout – binary options have a fixed payout in percentage. The average profit you can make when the binary option expires in the money is 85%. With Vanilla Options from Easy-Forex there is no limit in profit, before the option’s expiry time.
- Expiration – Vanilla options expire monthly. Binary options have a wide range of expiry times ranging from 30 seconds to 1 year.
- Execution – Vanilla options can be executed prior to the expiry time. Binary options can’t.
- Right to buy – just like with common options, with Vanilla options you can turn the option in common stocks. Binary options are cash settled.
Why Vanilla Options are cool – The Benefits
- Risk is limited to the price invested in the vanilla option.
- Vanilla options provides a wide variety of strategies. While trading binary options makes you rely on technical trading indicators.
- Very handsome leverages. Invest less money, make more profit.
Easy-Forex offers the best and biggest package for professional and beginner traders. Not only vanilla forex options, also cfd’s, forex and indices are available to take position in. Reasons for you to open an account with Easy-Forex.com are:
- 300+ markets to trade
- FX, commodities, indices, options
- Fixed spreads
- Segregated client accounts
- Trusted for more than 12 years
New to Forex Options Trading? This is how Vanilla Options work at Easy-Forex:
If you are new to options; the ﬁrst time you log into the options platform, you will be taken to this screen which allows you to trade a predefined put and a predefined call.
To buy a call simply click on Trade now, the same applies for buying a put
Based on these parameters the premium will be calculated and shown. When you have set all parameters, click on ‘scenarios’ to view a graphical summary of your proﬁt and loss at different strike prices at expiry.
Creating a Forex Options Trading Strategy
Creating an option strategy is easy; all you have to do is add another position by clicking on ‘+add line’.
For each line you have to set your parameters, call/put, buy/sell, strike price, expiry date and amount. Remember, you cannot sell an option without buying one. If you think your strategy is a hit, why not publish it in the strategies marketplace and share it with your friends on a number of social media sites. It’s easy, just put a strategy name and add a small description.
The strategies marketplace
To view your strategies, and strategies that others have published, you can visit the strategies marketplace. Here you can ﬁnd strategies categorised by popularity and rate them by adding a star to the ones you like! If you are confident that a strategy suits you, you can trade it at your own discretion.