Why the Swiss Franc is a Frequently Traded Currency Why Value Investing is a Successful Investment Strategy

Why Trade Options?

There are several reasons why options in general appeal to many traders:

- Your downside risk is limited to the option premium (the amount you paid to purchase the option).
- You have unlimited profit potential.
- You pay less money up front than for a spot (cash) FOREX position.
- You get to set the price and expiration date. (These are not predefined like those of options on futures.)
- Options can be used to hedge against open spot (cash) positions in order to limit risk.
- Without risking a lot of capital, you can use options to trade on predictions of market movements before fundamental events take place (such as economic reports or meetings).
- SPOT options allow you many choices:
Standard options.
-- One-touch SPOT
Source: http://www.investopedia.com/articles/trading/04/101304.asp