It is currenciws to get currncies good grasp of these concepts before we go any further and explore the math associated with them. These concepts set the stage for knowledgeable Forex analysis and trading. The Pip ExposedAs discussed in previous library articles, a pip is the smallest price change a given exchange rate can make. For this right, a premium is paid to the seller, the amount of which varies depending on the number of contracts if the option is bought on an exchange, or on the nominal amount of the option if it is done on the over-the-counter market.
Customer Support. FX options are call or put options that give the buyer the right (not the obligation) to buy (call) or sell (put) a currency pair at the agreed strike price on the stated expiration date.FOREX option trading was initially conducted only by large foorex where fund managers, portfolio managers and corporate treasurers would offload risk by hedging their currency exposure in the FX option market. However, currency options are now very popular amounst retail investors as ddlta trading and market access is now so widely available.
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