Note: the owner is buying the option and not the currency itself

Step 1:

Select the currency pair which you would like to trade on e.g. USD/EUR, GBP/JPY

Step 2:

Decide if you want to make a call option or a put option. If you buy a call option then you predict that the rate of the currency pair will increase. If you buy a put option then you predict that the rate of the currency pair will decrease.

Step 3:

Choose your expiry date – do you want the option to expire at the end of the nearest hour or at the end of the day, week or month?

Step 4:

Enter investment amount – decide how much you would like to invest in this option.

Step 5:

Wait for the expiry – the expiry level of your chosen currency pair at the selected expiry time and date will be displayed in the trading box

Step 6:
To begin trading, you must have opened an account at anyoption.com.

anyoption™ is a new binary option trading platform available for private and institutional investors worldwide. Our option trading platform is 100% web based, and does not require software download or any other previous trading experience.

anyoption™ pricing and execution modules set up a new standard in the online trading market: the interface is self explanatory and easy to use, the range of products we offer options on is incomparable and the speed and accuracy of settlements is flawless. We use the most advanced and stable technologies to assure your safety and satisfaction.

Between 1876 and World War 1, the international economic system was governed by the gold exchange standard. A country’s monetary supply would be based on the quantity of gold reserves that they had at their disposal. However, the gold exchange standard was subject to boom-bust patterns and hence was too weak to be sustainable.

In 1944, the Bretton Woods Agreement was made, which helped to establish a fixed exchange rate in terms of gold for major currencies. National currencies were fixed against the dollar, which itself was set at a rate of 35 US dollars per ounce of gold.

The Bretton Woods system was abandoned in 1971 and a floating exchange rate system was adopted. This meant that a currency was set according to supply and demand for that currency relative to other currencies. Floating exchange rates could therefore change freely and were determined by trading on the forex market.

As the development of technology escalated, so the pace at which forex trading could take place grew, and cross border capital movements built up momentum.  Transactions in foreign exchange increased intensively from nearly billion dollars a day in the 1980s, to more than $1.9 trillion a day two decades later.

Why do we need a foreign exchange market?

The FX market was created to permit and assist international trade and investment. It enables two countries with different currencies, to trade between themselves, even if they normally trade in an alternative currency i.e. England can trade with America in dollars, America can trade with Japan in the yen and Japan can trade with England in the pound.

Since there is no centralized trading area for the forex market, it is known as an over-the-counter market. It is available globally, 24 hours a day, 7 days a week. Trading starts in Sydney, moves to Tokyo then London and ends up in New York. It is then time to start again in Sydney.

The foreign exchange market (currency, forex, or FX) is where currency trading takes place. It is where banks and other official institutions facilitate the buying and selling of foreign currencies. FX transactions typically involve one party purchasing a quantity of one currency in exchange for paying a quantity of another. The foreign exchange market that we see today started evolving during the 1970s when worldover countries gradually switched to floating exchange rate from their erstwhile exchange rate regime, which remained fixed as per the Bretton Woods system until 1971.