Currency option

(redirected from Foreign exchange option)
Also found in: Wikipedia.

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 ?
I had flagged the Turkish lira as a strategic short when skews in London foreign exchange option markets suggested that the smart money was bailing out of the lira.
RMB/foreign exchange options trading means RMB/foreign exchange option contracts entered into between banks and customers, where the buyer has the right to deal in foreign exchange options in the agreed currency and direction and at the agreed price and amount to the other party in a certain period in future or at a specified time, by paying an option premium.
Alternatively, they can select a foreign exchange option that allows them to guarantee themselves a minimum exchange rate whilst benefiting from any improvements.
A foreign exchange option is a contract that allows the holder to purchase or sell a designated quantity of foreign currency at a specified price or exchange rate up to a specified date.
SD-CM will also enable the pricing and risk management of commodity options in any base currency through a link to SD-FX(TM), the foreign exchange option market's benchmark pricing system.
global foreign exchange, including non-deliverable forwards (NDFs) and foreign exchange options (FXOs)
The bourse plans to introduce index options in the second quarter of 2013 and foreign exchange options will start trading in 2013, Yilmaz said.
Commenting on the launching of the foreign exchange options trading service and its corresponding trading platform, Mr.
L), the global application software and services company, today announces that an analysis of client activity using Misys Confirmation Matching Service (CMS) in 2011 compared to 2010 shows a rapid increase in the use of foreign exchange options by its corporate and fund management clients.
The Royal Bank of Scotland (RBS) (LSE: RBS) (NYSE: RBS-PP) has launched a new algorithmic trading system that will help clients hedge the risks associated with their foreign exchange options portfolios.
The bank also said that it would start export-oriented foreign exchange options operations as of April 6, 2011.
Foreign exchange options control risk and expand capabilities

Full browser ?