Options: Pros and Cons
Buying options limits your exposure. The maximum you can lose is the value of the option, the price you paid for it.
Purchasing options as a speculative vehicle offers limited downside — you cannot lose more than the price you paid for the option — and unlimited upside, at least on a call. If you purchase a put, your profit is technically limited to the underlying currency going to zero.
The cost of the option may be less than the margin on the same spot position.
You pay for the time value of an option. In spot forex, other than rollover charges (typically small), you do not pay for the time you hold a position.