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Currency Option |
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Currency option 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. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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K, pound exchange rate and decides to manage that risk by purchasing a foreign currency option directly from a U. Currency options markets showed traders betting on an end to. If used correctly currency options will give you staying power and huge leverage, but most traders don't know how to use them correctly. |
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