Forex

As hedge the risk of exchange operations in the use of options?

As hedge the risk of exchange operations in the use of options?


Often traders operating in the foreign exchange market, also take advantage of the opportunities. We hold these term options mean their "classic" options and binary options. There are two types of options that traders can buy:

Call option
Sales options

the risk of exchange operations, Forex,


First, we explain how both kinds of options. We note that the options market is different from the currency: if you want to work with options, most likely entrust another broker forex brokers will work in the forex market.


For those who do not know what they call options: This type of option gives the right but not the obligation, to buy a certain amount of property (we chose in the purchase of call options, if we talk about the forex currency pairs) at a fixed price (called the strike price) on a specified date. Those who buy call options, usually a bull performance forecasts; On the other hand, those who sell bearish or neutral forecasts.

For those who do not know the choice of what they put: This type of option gives the right but not the obligation, to sell a certain amount of assets (with us chose to buy put options, if talking about currency) pair in a certain set price (called the strike price) on a specified date. Those who buy a put option usually the pessimistic forecasts of action; On the other hand, those who have to sell a bull or neutral forecasts.

When buying call options and put options, you have to pay a "bonus" (fixed amount of money) for sellers money will remain the seller of the option, regardless of the fact that at that time (buyers ) to exercise the right to purchase in the amount of choice of property or No.

In practice, call options and put options can cover positions that will open in the currency market:

Through selling options, we can meet the "long" position (ie open positions indicate growth coins pair)

Through the purchase options, we cover "short" positions (ie, the open positions that indicate a decrease in the value of the currency in the pair)

Obviously, we always have to cover positions: protect your position (which is "covered" he says), the English language has a price. Therefore, if you choose to cover your position, you (in the event that all expected) will be lower. Usually, those who make "coverage" and therefore has a tendency to cover their positions, which is precisely what make trade positions, and that is their position in time remains open.

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