Tag: fx options

Yesterday, we looked at the differences between traditional futures and forex futures. Today, we'll be looking at the one of the main uses for...

Option volatilities are a measure of the magnitude and frequency of the changes in the price of a currency. On the other hand, implied...

Risk reversals reflect the expectation of the market in terms of the direction of an exchange rate. When used in the correct context, risk...

Theta Theta measures the time decay associated with an option, which is the amount that an option will lose each day as a result of...

The price of options don't always move in exact correlation to the price of the underlying currency pair, as other factors such as volatility...

One of the most common uses for FX options among forex traders is to use them as a hedge against cash positions. Today, we're...

In the previous instalments, we've looked at the differences between the various types of option. Today, we're going to look at an example of...

There are several factors that influence the value of options. These are: Intrinsic value This is a measure of how much the option would actually be...

There are a number of reasons why options are appealing to traders. Here are some of the main ones: Downside risk is limited to the...

Although options are more commonly associated with the stock market, these financial derivatives can also be used to trade the currency markets. Although it...