Options trading - another scam or a chance to make money?

Recently, options trading has become increasingly popular as an alternative to forex trading.

The main advantages of this method of earning are cited as the ease of executing trades, the lack of need for market analysis, and the elimination of psychological pressure on the trader.

Furthermore, most options brokers claim that this method of making a profit is more profitable than standard trading using leverage.

Let's begin with the latter point.

Options profitability.

Dealing centers offer a 75-85% reward if your prediction comes true; if it doesn't, you'll only have a maximum of 20% of the option amount left in your account.

This means that if you trade with $100, you can expect to make $80 in profit or lose the same amount. Obviously, in the latter case, there's almost no money left for the next trade.

When trading with standard leverage, things play out differently. First, your $100 turns into $10,000 (1:100 is the average leverage), meaning you can open trades with a volume of approximately 0.1 lot.

You can earn about $10-20 with this amount if you trade on short timeframes, and losses are also roughly equal to this amount. You can, of course, increase your leverage even further, but then the risk becomes prohibitive.

As you can see, the profit per trade with classic trading is indeed lower, but the risk of losing almost the entire amount is also significantly reduced.

Integrity of options trading.

Conventional dealing centers are also guilty of playing against their traders, but in the options market, this is more often the rule than the exception.

Most brokers specializing exclusively in options trading engage in price adjustments and other nasty tricks that reduce your chances of winning.

The broker's profit is your loss, as options trading eliminates the spread , which is the broker's primary source of income in the forex market.

Therefore, you should think twice before choosing this trading method.