This article explains vanilla option trading and option trading at easyMarkets, an overseas FX broker. It is a very unique company among FX brokers around the world. That is because it offers a very unusual transaction. The transaction is called vanilla option. Option trading is a service that is not offered by other brokers, so it is highly recommended.
What is vanilla option?
Vanilla options are options transactions that allow you to purchase the right to buy or sell in the future. There are put options and call options for vanilla options. By paying a premium, users can trade call and put options, limiting losses and aiming for unlimited profits. Customers can trade profitably while watching the situation of new trades. You can trade simply while watching volatility and economic conditions. To get started, you will need indicators and metatrader.
premium
The right to pay to purchase an option.
put option
Refers to the right to purchase in the future. By purchasing, the holder is given the right to sell the trading instrument at a predetermined date and at a predetermined price.
call option
Refers to the right to sell in the future. By purchasing, the holder is given the right to purchase the traded product on a set date and at a predetermined price.
Benefits of vanilla options
The advantages are as follows. It is a financial service that has an exercise price and allows you to place orders according to market movements and the environment when opening a position. Partners can request and hold positions until maturity and limit losses, so it is a good service that will not fail. If you are a first-time user, let’s first take a look at the official website for details.
- User can set the period
- No swap points
- no margin
- Reduce losses and increase profits
- Can be held for up to 6 months
Target stocks for vanilla options
Currently, the following stocks can be traded with vanilla options. Our company has restrictions in the terms and conditions. All foreign exchange pairs are eligible. However, only gold and silver are eligible for precious metals. The types of financial products are limited by the system, so be sure to check it out when you use your assets to experience it.
- Forex
- Gold
- Silver
Difference between vanilla options trading and forex trading
There is a difference between vanilla option trading and foreign exchange trading. For more information, we recommend that you also look at the official website. If you listen to the support when using the service, they will also explain it to you. This is a highly recommended feature because you can start by fixing the rate and checking it frequently. Check the amount of your balance internally, log in, and try using it with virtual currencies, currency pairs, and CFDs right away.
transaction fees
The only transaction cost in vanilla options trading is the premium. On the other hand, in the case of foreign exchange trading, there are transaction fees and swap points. In some cases, spreads may also be included.
Payment date
The settlement timing of vanilla option trading is fixed because it is performed on the premise that the expiry date is fixed. On the other hand, in the case of foreign exchange, there is basically no deadline and payments can be made at any time.
risk
In the case of foreign exchange, risk and return exist in equal proportions. However, vanilla options have limited risk and unlimited returns. Vanilla options do not allow you to lose more than the premium.
Can only be traded on its own platform
Vanilla options can be traded using a proprietary platform. You need to place an order from the order panel on the proprietary platform. You can’t place an order on MT4 or MT5, so give up. If you have any concerns about the functions or purpose, please click and ask easy’s customers. You can rest assured because they are a company with a financial license. There are no other companies that offer similar tools, so even professionals are confused. Capture the rising chart.
You can open an account for free
You can open an account with easyMarkets for free. There is no risk, so if you are interested, open an account. Individual learning centers and navigation are provided, which is very fun and convenient. You can trade safely as an individual. Check it out by accessing the link below. Recently, the number of investors who want to participate has increased, and it is bustling. This package series of foreign exchange options trading is unique to this broker. You will be able to make a big profit.
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