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With the expertise that you have gained, you are contemplating becoming a FX trader. You want...

With the expertise that you have gained, you are contemplating becoming a FX trader. You want to speculate on a particular currency (Japanese JPY Yen). What is a better choice for speculating futures contracts or options contracts? Refer to these websites: Www.cme.com Www.PHLX.com

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Answer #1

Depends on the risk taking ability and also the view regarding currency

One cannot trade just futures or just options-a mix of both

Options provide leverage more than the futures which is advantageous but can prove disastrous as well when the actual market performs against the trader's view.

Also, futures provide profit only when the currency goes up or down thats is dependent on the move of the underlying. Options provide exposure to not just movement but volatility as well so they can profit even if the underlying does not move. There are various trading strategies for that. With options, one can play on multiple factors through various strategies but with futures strategies are limited.

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