Forex option brokers can generally be divided into two separate
categories: forex brokers who offer online forex option trading
platforms and forex brokers who only broker forex option trading via
telephone trades placed through a dealing/brokerage desk. A few forex
option brokers offer both online forex option trading as well a
dealing/brokerage desk for investors who prefer to place orders through a
live forex option broker.
The trading account minimums required
by different forex option brokers vary from a few thousand dollars to
over fifty thousand dollars. Also, forex option brokers may require
investors to trade forex options contracts having minimum notional
values (contract sizes) up to $500,000.
Last, but not least, certain
types of forex option contracts can be entered into and exited at any
time while other types of forex option contracts lock you in until
expiration or settlement. Depending on the type of forex option
contract you enter into, you might get stuck the wrong way with an
option contract that you can not trade out of. Before trading,
investors should inquire with their forex option brokers about initial
trading account minimums, required contract size minimums and contract
liquidity.
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