Call option: if the cost of the base currency is higher than the strike price, your account will automatically purchase a currency for a corresponding strike call. Afterwards you will be able to sell this currency for the current price for momentary receiving the income. If the quotation of the basic currency is lower than the strike price, the option expires if there is no profit for this option or no other currency position was open.
Put option:...
Basic rules of options trading
On November - 18 - 2009
The use of options and Options Notion understanding is inevitable for thorough understanding of this article. Reviewing the article “Forex special vocabulary” is strongly advised.
Since you bought an option, you have only two ways of getting profit from it and avoiding losses: you have to sell it in the right moment or keep it till the expiration date.
A position closing is a means of returning of the basic transaction for closing the deal. If...
The use of options
On October - 28 - 2009
Understanding the Options Notion is inevitable for thorough understanding of this article. Reviewing the articles like “Forex special vocabulary”, Support and resistance levels strategy, Average moving medium strategy is advised as well.
There is several ways you may use options in order to get incomes from the currency pair rates changes (growth or reduction). The most basic strategies mean use of call and put options as means of basic currency...
Options Notion - 2
On October - 27 - 2009
Reviewing the articles like “Forex special vocabulary”, Support and resistance levels strategy, Average moving medium strategy
The option price is called Premium. Option’s premium is defined by several factors, including his type (call or put), current basic price of the currency, strike-price of the option, left till the expiration date and volatility. Options premium is calculated on the basis of one lot. Option purchase is reflected as a...
Options Notion
On October - 21 - 2009
Reviewing the articles like “Forex special vocabulary”, Support and resistance levels strategy, Average moving medium strategy, Spot forex vs. currency futures can be useful for complete understanding of this article.
Options is a very multisided trading instrument. As the option cost is lower than the cost of the basic active (in this case, a trading pair), it enables trade with a credit arm providing better risks management. Said in plain words,...
