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: if a basic currency cost is below the strike price, your account will automatically sell the currency at the strike price. Later on you can buy another currency at current market price and receive the profit momentarily. If the currency quotation is over the strike price, the option duration expires with no opening a new position.

Options enable you to buy or to sell a basic instrument.

If you buy an option, you are not obliged to buy or sell a basic instrument, you just have such possibility.

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.

There are three main market movements: up, down and side to side. It’s very important to asses a possible market change before opening the position.