Minimum Complexity, Maximum Returns
In the world of trading, forex derivatives are one of the latest additions on the block. What makes trading forex derivatives so appealing is its ease of use and good profit potential. It is all executed through the stock exchange, and you get the opportunity to decide whether you think your instrument of choice will go up or down in price in the expiration time that want to work with. You can make a call option if you believe the price will go up, and a put option if you think the price will go down. In addition, you get to determine the timeframe that you will trade within, with the ability to cut it down to as short as 60 seconds.
With forex derivatives, you are not required to predict the size of the movement of your instrument of choice. All that is important is the direction of the price movement. Simplicity is the name of the game when it comes to forex derivatives. With forex derivatives, the entire process of trading is straightforward and easy to understand, with no need to worry about stop loss or when to sell. Here are some of the key terms to focus on in order to fully understand forex derivatives trading: