Options are a good way to profit while keeping the risk down--after all, you can lose no more than the premium! Many forex traders like to use options around the times of important reports or events, when the spreads and risk increase in the cash FOREX markets. Other profit-driven forex traders simply use options instead of cash because options are cheaper. An options position can make a lot more money than a cash position in the same amount.
Source: http://www.investopedia.com/articles/trading/04/101304.asp
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