Traders traditionally can choose the price and date to make a conventional option valid. Conventional options enable you to purchase something from the option seller, without being obligated to purchase it, at a set price and time. One the trader has chosen the price and date of the option; he receives a quote indicating the premium he has to pay to obtain the option.
Traders can choose from the American-style options which can be exercised at any point until it expires. The European-style is the exact opposite; it can only be exercised at its expiration.
What conventional call/put options lack in flexibility, they make up for in their lower premiums. Furthermore, being able to buy and sell your call/put options before expiration adds some flexibility. However, call/put options are a little harder to execute that SPOT options.
External Resources:
Forex Trading System
Forex Option Trading Resource
Showing posts with label forex options. Show all posts
Showing posts with label forex options. Show all posts
Tuesday, April 21, 2009
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