About Forex Options

 

Overview

RetroForex offers aspiring and experienced foreign exchange traders a number of unique methods to profit from the forex market. Unlike traditional options which are traded on margin against the future performance of various commodities, RetroForex’s fixed options platform allows traders to literally go back to the future, placing trades on the movement of a currency pair made during a randomized two hour to four day period extracted from historical data feeds.

Unlike traditional options that carry virtually unlimited risk and reward, the fixed options platform enables you to define your risk and reward. Your risk is always limited to the premium you elect to pay. You also define your reward. Payouts can be set in amounts anywhere from $1 to $100.

The various types of fixed options are straight forward and fast paced.

Registered Members Area

How to Place a Trade

Step 1. Click the    to display either a candlestick or bar chart showing preliminary data. Currency pairs and time compression displays are randomly generated from 10 currency pairs in one of six time compressions that range from one minute to one hour. You will use this preliminary data to establish option parameters and to make a prediction regarding the currency pair’s movement prior to the expiration of the option period.

 

Step 2. Once the preliminary chart has been generated, enter the desired payout     in any amount from $1 to $100. Once set, the value will remain the same throughout your trading session unless you elect to change it.

 

Step 3. Click on the option type desired.

 

Step 4.Define the desired option’s parameters as described below:

  • Set the Desired Strike Price(s). Drag the yellow pricing bar (bars as in the case of a double no touch or barrier one touch) to the desired position(s) above or below the opening price. This will adjust the strike price and premium amount which appear in the expanded option summary window in the upper left hand corner of the chart.
  • Set the Desired Option Period. Drag the right end of the yellow pricing bar to the right to or left to extend or shorten the option’s expiration. An increase or decrease will also affect the premium amount.

Note: the option summary display area may be expanded or collapsed by clicking the “open” or “close” tabs which appear beneath the respective summary window displays. Closing the display will naturally allow you to view more chart area while continuing to display the specified premium.


Collapsed

Expanded

 

Step 5. Click the    to purchase the option. The remaining data will display and, should the parameters of the selected option be met during option period, your account is immediately credited with the specified value. The profit amount will be the Value – Premium for each successful option.

 

Optional Step. Many times an additional candlestick or two makes a significant difference in proper analysis. For example, a single candle may confirm a reversal in the trend and thus dictate the location of barrier placement.

For these times we offer the opportunity to “Buy More Data”. To do this first select the desired amount of additional data via the    menu, and then click the    button to display the extra data.

 

See the Learning Center page for helpful hints to increase your chances of success on the RetroForex trading platform.

Fixed Premium, Fixed Return No Margin Account Required