Options trading - another scam or an opportunity to make money?

Recently, you can increasingly see advertisements for options trading as an alternative to making money on Forex.

The main advantages of this type of earnings are the simplicity of transactions, the absence of the need to conduct market analysis, and the elimination of the factor of psychological pressure on the trader.

In addition, most options brokers assure that this option for making profits is more profitable than standard trading using leverage.

Let's start analyzing the issue from the last moment.

Profitability of options.

Dealing centers offer 75-85 percent of the reward if your forecast comes true; if things go wrong, you will have a maximum of 20% of the option amount left in your account.

That is, by participating in a trade with an amount of $100, you can count on $80 in profit or the same amount of loss.

It is clear that in the latter case there is almost no money left for the next deal. When trading with standard leverage, everything happens in a different scenario, firstly, your 100 dollars turns into 10,000 (1:100 is the average leverage), that is, it becomes possible to open transactions with a volume of about 0.1 lot.

What can you earn from such an amount, approximately 10-20 dollars, if you trade on short time periods, the losses are also approximately equal to this indicator.

You can, of course, increase your leverage even more, but then the risk will reach prohibitive levels. As you can see, the earnings from one transaction with classical trading are indeed less, but the risk of losing almost the entire amount is also reduced significantly.

Honesty in options trading.

Ordinary dealing centers also sin by 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 are engaged in adjusting quotes and other dirty tricks that reduce the chance of winning.

The broker’s earnings are your loss here, because with options trading there is no spread , which is the main source of income for a Forex broker.

That is why you should think ten times before choosing this trading option.