Printer Friendly

Kathleen Nurok

The forex options market started as an over-the-counter (OTC) financial vehicle for large banks, financial institutions and large international corporations to hedge against foreign currency exposure. Like the forex spot market, the forex options market is considered an "interbank" market. However, with the plethora of real-time financial data and forex option trading software available to most investors through the internet, today's forex option market now includes an increasingly large number of individuals and corporations who are speculating and/or hedging foreign currency exposure via telephone or online forex trading platforms. Forex option trading has emerged as an alternative investment vehicle for many traders and investors. As an investment tool, forex option trading provides both large and small investors with greater flexibility when determining the appropriate forex trading and hedging strategies to implement.

Most forex options trading is conducted via telephone as there are only a few forex brokers offering online forex option trading platforms.

Forex Option Defined - A forex option is a financial currency contract giving the forex option buyer the right, but not the obligation, to purchase or sell a specific forex spot contract (the underlying) at a specific price (the strike price) on or before a specific date (the expiration date). The amount the forex option buyer pays to the forex option seller for the forex option contract rights is called the forex option "premium."

The Forex Option Buyer - The buyer, or holder, of a foreign currency option has the choice to either sell the foreign currency option contract prior to expiration, or he or she can choose to hold the foreign currency options contract until expiration and exercise his or her right to take a position in the underlying spot foreign currency. The act of exercising the foreign currency option and taking the subsequent underlying position in the foreign currency spot market is known as "assignment" or being "assigned" a spot position.

The only initial financial obligation of the foreign currency option buyer is to pay the premium to the seller up front when the foreign currency option is initially purchased. Once the premium is paid, the foreign currency option holder has no other financial obligation (no margin is required) until the foreign currency option is either offset or expires.

On the expiration date, the call buyer can exercise his or her right to buy the underlying foreign currency spot position at the foreign currency option's strike price, and a put holder can exercise his or her right to sell the underlying foreign currency spot position at the foreign currency option's strike price. Most foreign currency options are not exercised by the buyer, but instead are offset in the market before expiration.

Foreign currency options expires worthless if, at the time the foreign currency option expires, the strike price is "out-of-the-money." In simplest terms, a foreign currency option is "out-of-the-money" if the underlying foreign currency spot price is lower than a foreign currency call option's strike price, or the underlying foreign currency spot price is higher than a put option's strike price. Once a foreign currency option has expired worthless, the foreign currency option contract itself expires and neither the buyer nor the seller have any further obligation to the other party.

The Forex Option Seller - The foreign currency option seller may also be called the "writer" or "grantor" of a foreign currency option contract. The seller of a foreign currency option is contractually obligated to take the opposite underlying foreign currency spot position if the buyer exercises his right. In return for the premium paid by the buyer, the seller assumes the risk of taking a possible adverse position at a later point in time in the foreign currency spot market.

Initially, the foreign currency option seller collects the premium paid by the foreign currency option buyer (the buyer's funds will immediately be transferred into the seller's foreign currency trading account). The foreign currency option seller must have the funds in his or her account to cover the initial margin requirement. If the markets move in a favorable direction for the seller, the seller will not have to post any more funds for his foreign currency options other than the initial margin requirement. However, if the markets move in an unfavorable direction for the foreign currency options seller, the seller may have to post additional funds to his or her foreign currency trading account to keep the balance in the foreign currency trading account above the maintenance margin requirement.

Just like the buyer, the foreign currency option seller has the choice to either offset (buy back) the foreign currency option contract in the options market prior to expiration, or the seller can choose to hold the foreign currency option contract until expiration. If the foreign currency options seller holds the contract until expiration, one of two scenarios will occur: (1) the seller will take the opposite underlying foreign currency spot position if the buyer exercises the option or (2) the seller will simply let the foreign currency option expire worthless (keeping the entire premium) if the strike price is out-of-the-money.
Forex Precog Review, Forex Precog, Forex Precog Scam, Forex Precog Michael Nurok, Forex Precog Reviews, Forex Precog Program, Forex Precog System

Guest Book

If you would like, you can add your name and a short message to our Guest Book. Thank you.

Sign the Guest Book

Records 1 - 25 of 1,001+

Wed, Mar 22, 2017
You have probably the greatest websites.
Feel free to visit my page :: ______________ ( %url )

Elena Tapia
Sun, Mar 19, 2017
Originality is among the principal reasons to keep in mind. The motives should state that the degree will enable the applicant to make a significant contribution to his or her community. You may use lack of interest as a reason, so long as you can justify it, such as developing more interest and devotion to another skill or subject.
Stop by my weblog paper writing ( %url )

Sat, Mar 18, 2017
However, not everyone he says, felt that The Bicycle Repair Shop could be a successful business model. You should be able to come up with a large list of - Auto Body Portland service companies that will be able to help. When entering a shop look around, see if their prices are posted.
Here is my web blog ... Meridian Idaho, ( %url )

Stepanie Gain
Thu, Mar 16, 2017
Simply just want to state I am just ecstatic I came on your internet page!
my web page; green tea ( %url )

Gus Salinas
Wed, Mar 15, 2017
Really needed to tell you I'm pleased that i stumbled on your web page.
Here is my webpage ... Music Player ( %url )

Neil Fenstermacher
Wed, Mar 15, 2017
Taking into account the objective of your website, whether it is an informative website, an ecommerce website or a niche website, the company provides several effective SEO packages for different requirements and budgets. Many businesses do not realize that customers have hordes of options to choose from when they go online. An effective Internet marketing campaign will exploit areas of opportunity in both natural search and pay per click optimization.
Also visit my web blog Search Engine Optimization ( %url )

Franklyn Rackley
Tue, Mar 14, 2017
You're a very helpful website; couldn't make it without ya!
My homepage - medicamentos ( %url )

Victoria Balderas
Mon, Mar 13, 2017
Astonishingly user friendly website. Immense info readily available on couple of clicks on.
Also visit my web site; my audio system ( %url )

Thu, Mar 09, 2017
Others bought a bigger car, an extra car or maybe staged an expensive wedding. And don't be afraid, here bargaining, setting up prices and changing them in a moment's breath, this is how it's done here. Statistics show that cosmetic procedures, including the minimally invasive procedures, as well as the surgical, increased in the last year.
Feel free to visit my web blog: christy special Clothes and art ( %url )

Bennett Sipes
Thu, Mar 09, 2017
Take a look at my webpage: personal trainer em londrina ( %url )

Tue, Mar 07, 2017
Great beat ! I would like to apprentice at the same time as you amend your website, how could i subscribe for a blog website? The account aided me a acceptable deal. I were a little bit familiar of this your broadcast provided vivid transparent idea
Also visit my blog post ... Sea Lodge Pattaya Preise ( %url )

Tue, Mar 07, 2017
In addition, the cross section of this particular pyramid, superimposed over the man_s figure, seems to represent the exact size and location of the Egyptian men's skirts custom. While it is very true that you do need to have a high quality design to your website that does incorporate important keywords, it is not true that you need to pad your website with too many keywords. SEO firms can help create link-worthy content by writing articles and blogs with links to relevant content on other websites.
Here is my blog post Search Engine Optimization ( %url )

Tue, Mar 07, 2017
I just could not leave your web site prior to suggesting that I really enjoyed the usual info a person provide in your guests? Is going to be back incessantly in order to check out new posts
My web-site :: canon T3i body ( %url )

Mon, Mar 06, 2017
Whenever possible, do not take the computers home for repairing. I have done this and my current body shop manager was once an apprentice. For more of the best small businesses to start for new entrepreneurs, continue reading on Page 2.
my website :: Towing Software ( %url )

Sun, Mar 05, 2017
Even though this is not a course of study that leads to a career diploma or certificate, it is a class that provides a wealth of information and hands-on tips and tricks from someone who has obviously spent a lot of time working on motorcycles. A small business has to find a niche, in order to compete with the big names in their market - and an auto repair shop is no different. Only a specialist is likely to be well-versed in the ways of a car transmission, which makes it difficult to see for yourself if what a technician is telling you is correct.
My weblog RepoXR Repossession Software ( %url )

Sun, Feb 26, 2017
Thanks for the purpose of supplying these kinds of superb posting.
My website; recycle lithium ion batteries bracknell ( %url )

Vance Shannon
Sat, Feb 25, 2017
Wow, lovely portal. Thnx ...
Here is my weblog - reallifecam , reallifecams, real life cam, real life cams, voyeur cams ( %url )

Oscar Dorris
Wed, Feb 22, 2017
In the event you submit work on behalf of another writer, permission of said writer must be granted prior to submission. some give write my essay for me ( %url ) papers away but require you to register;. In 12th century England the most primitive forms of soccer were played on the battlefield.

Wed, Feb 22, 2017
Check for membership in the local Better Business Bureau as well, as they could keep an eye out for the complaints records, and consequently, the reputation, of these companies offering BMW repairs. With the cost of car repairs on the rise and many people opting to keep their cars longer it is just natural to avoid extra costs. Then, position the new seat and finger tighten the new bolts.
Feel free to surf to my web page ... auto repair shop software ( %url )

Wed, Feb 22, 2017
Originality is among the principal reasons to keep in mind. Assignments on essays, tests, homework and many other occasions, even you might have experienced in writing an write my essay ( %url ). No matter how good your aids essay is, if the topic selection is not good, your essay won't create any worthwhile effects.

Wed, Feb 22, 2017
Awesome site you possess there.
my blog post :: private driver nice france ( %url )

Wilton Sterne
Wed, Feb 22, 2017
Passion the site-- extremely individual pleasant and lots to see!
My web-site; best SEO services ( %url )

Kazuko Yates
Tue, Feb 21, 2017
Whilst we intend to make every try to maintain the info on this website existing, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the details contained in or linked to from this site.
my weblog ... immigration lawyer near me yelp ( %url )

Mon, Feb 20, 2017
Lovely Web page, Stick to the useful job. thnx.
Here is my website; hack Subway Surfers iOS ( %url )

Paulo Vicente Martins
Mon, Feb 20, 2017
Bom Página da Web , Manter o útil trabalhar . Obrigado pelo seu tempo .
Meu site da Web : tratamento rugas labiais ( %url )

Records 1 - 25 of 1,001+

If you think this page contains objectionable content or if you have questions and need assistance, please contact our Support Desk toll-free at 1-877-824-8531 between 8am - 6pm (CST), Mon-Fri.