Forex Options are almost always included in investors’ portfolios for the simple reason that such options bring in substantial returns even when the economy is down or is on a standstill. Traditional way of trading in options lets investors and traders rely on price movement predictions within a certain time frame, usually within the exercise period of the option. Such conventional trading practice assumes that the Forex Options prices move in directional mode. While in certain cases that could be true, in general, price movements move non-directional which makes predicting the price movement a rather pointless effort.

In trading with Forex, the rules of a Non Directional Trading method may very well be applied given that the nature of currency price movements. This is particularly useful with Forex Options Trading wherein there is no reliance on predictions of the price movements. With options, you can stand to gain profit regardless of the condition of the market because you only need to see the spread or the difference of the strike price from the prevailing market prices upon the expiry of the options to decide whether you will exercise such rights or not. Of course, if there is no profit to be had, you are not obligated to sell your options at a loss. With Non Directional Trading, you can take advantage of the non-trending nature of Forex options by knowing the probabilities of a significant price moment. When you learn these simple tricks, then you can get substantial profits from Forex trading.



Source by Timothy Stevens