Fx Trading

fx trading

Forex options trading over -the-counter market began (OTC) currency of the vehicle large banks , financial institutions and international companies to hedge currency risk. Similar foreign exchange spot market, the foreign exchange options market is called "interbank " market.

Forex options trading has seen many traders and investors as an alternative investment . As an investment vehicle , options trading offers large and small investors to determine the appropriate forex trading and hedging strategies to achieve great flexibility. Most foreign exchange options trading is conducted by telephone , because only a small number of foreign exchange dealers , providing online options trading platforms .

Forex Options is a monetary currency , bonds, option buyer the right, but not promised or before a specific date ( in a definite price ( the exercise price ) to buy or sell a particular spot contract ( the underlying ) Maturity ) . Option contract by the seller of the option the right to the amount paid is referred to as foreign exchange option premium. "

The only major economic responsibility is the option buyer pays a premium to the seller in front of the option, the initial purchase . When the premiums paid , the option holder has no other financial commitments until the foreign currency option offset or expires . First, the option seller receives the option premium paid by the buyer . Sellers need to have funds in their account of the initial margin requirement.

, Foreign exchange options for buyers and sellers can offset the options market prior to the termination option contract , or choose to hold options contracts until it expires. It is important that investors understand, " put " and " call " is a different foreign currency option contracts , rather than the opposite sides of the same transaction . For each there is a place to put buyers sellers and buyers and sellers for each call has a call .