Options, Futures or Forex - Which One?

[JimboH]

Hi All,

I've been spread betting indices, mainly FTSE 100, part time for a little over 3 years and would very much like to make the transition into becoming a full time trader. Since my preferred method of trading is automated and I intended to create my own systems, I feel that I have outgrown the platform offered by my spread betting firm. As a result, I have been searching the internet for a more advanced trading platform and came across Ninja Trader.

As of late, I've been trying to familiarise myself with Ninja Trader and its many features and am impressed. Since the platform is not supported by any spread betting firms at present, I would need to move over to one of the supported instruments. Since the instrument I choose would need to be leveraged, I am left with either options, futures or forex.

I would therefore be grateful if people could share their opinion on which of three (options, futures, forex) they trade/prefer and why. This is so I can have insight and make an informed decision.

Thanks for taking the time to read my message.

James

 

[Hate2Lose]

Hi All,

I've been spread betting indices, mainly FTSE 100, part time for a little over 3 years and would very much like to make the transition into becoming a full time trader. Since my preferred method of trading is automated and I intended to create my own systems, I feel that I have outgrown the platform offered by my spread betting firm. As a result, I have been searching the internet for a more advanced trading platform and came across Ninja Trader.

As of late, I've been trying to familiarise myself with Ninja Trader and its many features and am impressed. Since the platform is not supported by any spread betting firms at present, I would need to move over to one of the supported instruments. Since the instrument I choose would need to be leveraged, I am left with either options, futures or forex.

I would therefore be grateful if people could share their opinion on which of three (options, futures, forex) they trade/prefer and why. This is so I can have insight and make an informed decision.

Thanks for taking the time to read my message.

James

Options and futures are a little more complicated than spread bets - fx a little less so. In my opinion, there's not really a better/worse option, just different. Options, probably the most complex, but allow you to trade using more dynamic strategies - look up straddles/strangles and others. You can trade predicted volatility in the underlying, which can be fruitful. Fx tends to be pretty good for trends, and as nobody can corner/manipulate the market as it's so big, tends to be popular. Flip side is there's no central exchange for fx, so no DMA.

If you're up for a challenge, see if you can master options trading - it's more dynamic, gives you more 'options'.

Hope it helps.

 

[lloydbee]

+1 for Options, why?

Trade up, down, sideways... get the trade direction right or wrong and the trade can be easily adjusted at anytime to change direction. Even a wrong directional trade has the possibility to make a successful trade by expiration.

Learn the Greeks and the true power of trading options come to light. Trade Volatility spikes on either side (up or down) and really see the power in making gains. Take quick small % gains or set up a trade for 100's of % in gains.

Limited risk at time of entry to suit your account and style, trade for minutes or trade for years.. you choose.

In saying that though, if you intend to stay automated, forget options it's not for you.