Do currency options work differently than stock options?

Answers:0   |   LastUpdateAt:2012-08-09 10:18:03  

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Raheel
Asked at 2012-08-09 10:18:03
I changed the options above, with U.S. stocks and understand that if I buy a contract for 100 shares at a price of $ 0.50 will charge me $ 50 plus commission . That's basically the same for forex? For example, I was looking at options CME euros. A contract is 125,000 euros. If I buy a contract at a price of 0.0010 which charge my account for $ 125 plus commission? Is that the most I can lose in that position or am I somehow 50:1 leveraged foreign exchange trading as a regular and I can lose a lot more than $ 125?
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