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Many people think of the stock market when they think of options. However, the foreign exchange market also offers the opportunity to trade these unique derivatives. Options give retail traders many opportunities to limit risk and increase profit. Here we discuss what options are, how they are used and which strategies you can use to profit.

Types of Forex Options
There are two primary types of options available to retail forex traders. The most common is the traditional call/put option, which works much like the respective stock option. The other alternative is “single payment option trading” – or SPOT – which gives traders more flexibility.

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