Options on Currency Futures

Instead of having to buy and sell currency pairs, options in a currency future offers the contract-holders the right, but not an obligation, to purchase a futures contract on the particular currency pair.

The strategy in such a case is that the option buyer can profit from the futures market without having to put down any margin in the contract. When the futures contract appreciate, the call or contract holder can just sell the call for a profit. The call holder does not need to buy the underlying futures contract. A put buyer can easily earn a profit if the futures contract loses value.

Related Posts

© 2024 Business Management - Theme by WPEnjoy · Powered by WordPress