Currency Option

 

A currency option is a contract between the option writer and its holder allowing the latter to buy or sell a certain currency at a certain exchange rate during a certain period.

Currency options include two main categories: traditional options and SPOT (Single Payment Option Trading).

Traditional options, the more common currency option category, allow the option holder to buy a currency pair at fixed price on a certain date. These contracts usually include a cull/put rule. Traditional currency options are traded [over-the-counter] with no centralized exchange market. SPOT, acronyms of Single Payment Option Trading also known as binary option, lets the trader to set the entire scenario that if met will bestow the trader with the payout, and the payout percentage as well.

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki