Pt 4 John Jagerson on "Leverage in the FX Options Market"

How does leverage work in the FX Options market? Is the options market an opportunity for traders looking for an alternative to higher margin requirements in the OTC forex? Join John Jagerson, a renowned author and Forex trader, as well as founder and contributor to LearningMarkets.com as he explores the concept of leverage in the FX Options market versus the OTC FX market. Option leverage works differently than it does in the forex but it can be just as productive for an educated trader. Learn more about how options pricing works and why FX Options have been a great alternative to the OTC forex market. Forex traders have traditionally had access to fairly high leverage ratios in the over the counter (OTC) forex market. Traditionally, leverage has been at least 100:1 of notional value. That is a very high rate and one that the CFTC is determined to change. Recently forex traders have been put on notice that maximum leverage in the OTC forex will be limited to 10:1 of notional value. This has many traders rethinking their account status.

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Education

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• John Jagerson
• leverage
• FX Options
• trading
• Foreign Exchange
• Market
• Forecast
• US dollar
• Japanese Yen
• New Zealand dollar
• British pound
• Swiss Franc
• Swedish Krona
• Brazilian real