Hi, I am looking into options and was wondering if anyone was trading them on forex, if so what strategies are usefull in this market ? how effective are these? and what brokers forex options?
The exotics provide a useful window on the direction the pros think the various pairs are heading. With some adjustments and using their own pricing models it is possible to get a general direction, but depending on your chosen timeframe, you'll need to get the timing right. The pros often, but not always, get it right. On balance, you'll do well to follow them, but get out quickly when you/they are 'wrong'.
Shorter timeframes gives you less time to get in and out - and less pips per trade, but the probability of their model being correct over your chosen timeframe is high. Longer timeframes relax the entry and exit, gives more pips, but reduce the probability of the direction being 'correct' over the entirety of your selected timeframe.
Normal commonsense applies on money and risk management so in either short or long scenarios these are workable strategies.
