Currency option

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Currency option

An option to buy or sell a foreign currency.

Currency Option

An option contract in which the underlying asset is a foreign currency. The option gives the holder the right but not the obligation to buy (for a call) or sell (for a put) a set amount of the currency at a certain exchange rate on or before the expiration date. They are largely used when international corporations wish to hedge against the possibility of adverse movements in foreign exchange rates.
References in periodicals archive ?
He told the BBC programme: "The fiscal commission working group set out not just a plan B as you put it but B, C, D, E and F, a range of viable currency options for an independent Scotland.
com/6UyU/how-options-work-in-the-fx-spot-market/) currency options is a category all by itself.
com)-- “We design this currency option trading service for traders and investors who are considered passive in their trading activities but want to control their risk as well as want to benefit from unlimited profit potential,” said Charles McKenna, the Chief Advisor for Global Currency Options.
The court rejected this argument, stating the inclusion of some options but not foreign currency options implied the opposite, that Congress had not intended to include it.
There is no indication, however, that Congress intended by this addition to extend the definition of "foreign currency contract" to foreign currency options.
World First is currently the only broker in the UK to provide currency options.
Currency options markets showed traders betting on an end to.
In the past year we have also introduced foreign currency options to our portfolio of services; we are currently the only broker in the UK to offer this service, for which we are FSA-authorised.
He uses the skills he acquired in trading equity options, equity index options, currency options, commodity options, and mortgage derivatives to playing Limit Hold'em.
These involve the use of currency options and interest rate transactions, which potentially give businesses an advantage.
Four of the Australian bank's currency options traders have been suspended following allegedly unauthorised trades and apparently exploiting weaknesses in the bank's internal procedures.
Prices in the currency options market can provide an indication of market perceptions of the uncertainty attached to future exchange rates.