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What is a foreign exchange option?

by Victor

Also called option, refers to the contract buyer after paying a certain option premium to the seller, in the future agreed date or a certain time, according to the provisions of the option to buy or sell a certain amount of assets.

Foreign exchange option is a kind of option. Compared with other kinds of options such as stock option and index option, foreign exchange option trades foreign exchange, that is, the option buyer obtains a right after paying the corresponding option premium to the option seller, that is, after paying a certain amount of option premium,

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The right seller shall have the right to buy and sell the agreed currency at the agreed exchange rate and amount on the agreed expiration date, and the right buyer shall have the right not to execute the above Sale and purchase Agreement.

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