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About FX Options
What are FX Options?
Where can FX Options be Traded?
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About FX Options
What are FX Options?
Where can FX Options
be Traded?
Product Specifications
Currency Table &
Historical Rates
Trading Strategies
FAQs
Contact Us
TRADING STRATEGIES
Investors have more choice and flexibility to hedge their currency exposure risk. FX Options allow the same core trading and hedging strategies used with options on stocks, ETFs and Indexes. A simple way to remember what type of option you need to buy is to focus on the base currency, which is the first currency in a currency pair. The second currency is the quote currency (counter-currency). Options prices are derived from the base currency relative to the quote currency.
The USD-based (per US $) is available for all ten pairs. For example, if you expect the dollar to strengthen against the yen - you buy YUK calls. If you expect the dollar to weaken against the yen - you buy YUK puts. In the "in US $" (inverse) convention, if you expect the euro to strengthen against the dollar, you buy EUU calls. If you are expecting the euro to weaken against the dollar, you buy EUU puts.
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Option buying for directional ideas
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Option buying for genuine hedgers
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Credit spreads for income
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Spreads for genuine hedgers
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