Types of Traders

There are many different types of traders out there, before entering the market for yourself, you may want to consider what type of trading you would be comfortable with. The different types of traders are:

1. Trend Traders

These traders attempt to buy a stock that is going up and hold onto it until it starts going down. The best part about this strategy is that it takes a relatively short amount of time to manage it. Trend traders could be in a stock for days or years, depending on how well the stock is doing, the idea here is, why kill a good thing.

2. Swing and Day Traders

Both swing and day traders attempt to catch the short movements in the stock market. It involves being much more active in your account and having to pay closer attention to patterns and other short term indicators. The great thing about these strategies is that you make a profit or loss fast and it can add up over time.

3. Option Trading

Similar to swing trading option trading attempts to make money from the stock market in a short term time period. The only difference is that with options you have the potential to explode your profits. A relatively small move in the price of the stock could mean a huge move in the option.

4. Option Seller

Option sellers on the other hand attempt to sell options that they believe will become worthless over time. This way they collect the premium up front and when the option hopefully expires in the future they are in no obligation to do anything. Option sellers do not attempt to hit the huge home runs, but try to make a good return over time by compound interest. These are the most popular ways to trade stocks. All traders will have to find out which strategy fits them the best.

Diversify your investment with FX Options

Forex Options trading is a more advanced type of currency trading available with a Tricom Trader online trading account. FX Options can be used to facilitate a number of trading strategies on a medium to long-term investment timeline.  They also offer an excellent opportunity for hedging spot positions. Forex Options are available for currency crosses, and Gold and Silver against the US dollar.

Tricom Trader offers Over the Counter (OTC) plain vanilla European style Forex Options in well over 30 major currency crosses, all through our online trading platforms.

Benefits of trading FX Options with Tricom Trader:

• Forex Options for 34 currency pairs
• Low margin requirements with professional netting calculations for hedging spot positions
• Option trading on live streaming price quotes, all with no dealer intervention
• Option expiries from short dated to one year
• Gold and Silver Options
• Automatic exercise of Options on expiry.

The majority of vanilla Options can be executed directly on live price quotes without dealer intervention. For other Options – including exotic currencies and multiple leg Options, the platform offers good price indications with trades quoted by a dealer on request.

What are FX Options?

A Forex Option gives an investor the right, but not the obligation, to either buy (Call Option) or sell (Put Option) a certain currency pair at a specified price (known as the strike) on a specified date (the expiry date). For this right to buy or sell the underlying asset, a premium is paid upfront to the seller of the Option. Whether one chooses to exercise this right is dependent upon the market conditions at the time of Option expiry. Trading Forex Options makes it possible to profit when a currency pair moves higher or lower.

A Tricom online trading account is a valuable tool for the professional FX trader. Our suite of trading platforms support online trading of FX Spot, Options and Forward Outrights. For the FX Options trader, Tricom is one of the only online providers that facilitates Options trading on live prices.