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This is a discussion on Non Linear Trading within the Forex forums, part of the Markets category; anyone use or has looked into this method of trading? ie the buy 1 every x points down with x ...
DEFINITION of 'Forex Option & Currency Trading Options'. A security that allows currency traders to realize gains without having to purchase the underlying currency pair. By incorporating leverage, forex options magnify returns and provide a set downside risk. Alternatively, currency trading options can be held alongside the underlying forex pair to lock in profits or minimize risk. In this case, limiting the upside potential is usually necessary for capping the downside as well.