McGraw-Hill international best selling Author James Dicks author of Forex Made Easy brings you the next installment of his forex series. Forex Options are a versatile, complimentary product to spot forex and CFD’s that allow you to trade in any market climate, regardless of low or high volatility. Options are also unique because when you buy an option, your risk is capped and your potential profit is unlimited! However, keep in mind that when selling an option, your risk is unlimited and your profit is capped. Investors have more choice and flexibility to hedge their currency exposure risk. Forex Options allow the same core trading and hedging strategies used with options on stocks, ETFs and Indexes. The world’s leading banks, hedge funds, proprietary trading firms and active individual traders – use options for both risk management and investment opportunities. Forex options offer a highly liquid market with a multitude of expiration's, currency pairs, quoting options and more, delivering contracts that are flexible enough to give you the ability to execute any trading strategy. A simple way to remember what type of option you need to buy is to focus on the base currency, which is the first currency in a currency pair. The second currency is the quote currency (counter-currency). Options prices are derived from the base currency relative to the quote currency.