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Options trader vs forex trader

The differences between options traders and forex traders can be seen in a few details. Each job has different responsibilities and duties. Additionally, a forex trader has an average salary of $115,092, which is higher than the $110,139 average annual salary of an options trader.

The top three skills for an options trader include FX, stock options and equities. The most important skills for a forex trader are technical analysis, foreign exchange market, and technical indicators.

Options trader vs forex trader overview

Options TraderForex Trader
Yearly salary$110,139$115,092
Hourly rate$52.95$55.33
Growth rate10%10%
Number of jobs1,43317,582
Job satisfaction--
Most common degreeBachelor's Degree, 82%Bachelor's Degree, 61%
Average age4343
Years of experience--

What does an options trader do?

Options traders are financial experts who work for large investment banks or private hedge fund companies to buy and sell stock options as well as manage complex capital investments for clients. These traders are required to create options contracts and develop forecasting models so that they can determine the optimal price to buy an option to maximize profit and minimize risk. They must assist head traders with client services to allow more trading revenue production. Options traders must also employ risk management strategies to minimize portfolio risk and increase their volume in trading.

What does a forex trader do?

Focusing on the foreign exchange market, a forex trader specializes in selling and buying foreign currencies. It is their responsibility to conduct extensive research and analysis before making decisions, identify profitable opportunities, monitor market conditions, and carry out transactions while maintaining records. They may work at hedge funds, banks, and even trade independently. There are also times when they must carry out trades upon a client's request, helping them understand the risks and extent of procedures.

Options trader vs forex trader salary

Options traders and forex traders have different pay scales, as shown below.

Options TraderForex Trader
Average salary$110,139$115,092
Salary rangeBetween $65,000 And $185,000Between $67,000 And $197,000
Highest paying CityNew York, NY-
Highest paying stateNew York-
Best paying companyThe Citadel-
Best paying industryFinance-

Differences between options trader and forex trader education

There are a few differences between an options trader and a forex trader in terms of educational background:

Options TraderForex Trader
Most common degreeBachelor's Degree, 82%Bachelor's Degree, 61%
Most common majorFinanceFinance
Most common collegeUniversity of Pennsylvania-

Options trader vs forex trader demographics

Here are the differences between options traders' and forex traders' demographics:

Options TraderForex Trader
Average age4343
Gender ratioMale, 90.8% Female, 9.2%Male, 91.5% Female, 8.5%
Race ratioBlack or African American, 5.4% Unknown, 4.1% Hispanic or Latino, 11.3% Asian, 12.2% White, 66.7% American Indian and Alaska Native, 0.2%Black or African American, 5.4% Unknown, 4.1% Hispanic or Latino, 11.1% Asian, 12.1% White, 67.1% American Indian and Alaska Native, 0.2%
LGBT Percentage6%6%

Differences between options trader and forex trader duties and responsibilities

Options trader example responsibilities.

  • Enact, and manage equity block desk operation and set up floor broker network on NYSE.
  • Create VBA applications to automate basic trading functions and administration functions such as reorganization tenders and trade pricing issues.
  • Manage business, sales, marketing, international negotiation and communication for a commodities business.
  • Trade options profitably on screen markets and trade complex option spreads via telephone brokers at the CBOE and CME.
  • Experience in communicating and executing derivative arbitrage opportunities, as well as communicating and executing trades fitting against an option position.
  • Research the SPX, DOW, and NASDAQ.
  • Show more

Forex trader example responsibilities.

  • Communicate with brokers to ensure accurate allocations for futures, foreign exchange, and equities between separately manage accounts.
  • Execute institutional equity orders on both an agency and proprietary basis in strict accordance to FINRA regulations and establish company guidelines.
  • Execute institutional equity orders on both an agency and proprietary basis in strict accordance to FINRA regulations and establish company guidelines.

Options trader vs forex trader skills

Common options trader skills
  • FX, 32%
  • Stock Options, 17%
  • Equities, 11%
  • Stock Market, 5%
  • Risk Management Strategies, 3%
  • Equity Options, 3%
Common forex trader skills
  • Technical Analysis, 25%
  • Foreign Exchange Market, 17%
  • Technical Indicators, 11%
  • Fundamental Analysis, 11%
  • Manage Risk, 9%
  • Market Trends, 5%