Forex best forex copy tradings are a kind of howtocopyforextrading trading, not what we often say about speculation in foreign forextradingsignal So what does Forex options mean? Today to introduce you to the forex options primer: the concept of forex options cashback forex the advantages of forex options trading forex options what does it mean? Foreign exchange options trading refers to the buyer in the option seller to pay the corresponding option fee to obtain a right, the right to buy and sell the agreed currency in accordance with the agreed exchange rate and amount agreed in advance between the two parties at the same time the right of the buyer also has the right not to execute the above-mentioned purchase and sale contract foreign exchange options trading in recent years has become second only to foreign exchange margin trading foreign exchange trading methods, the volume of transactions continue to rise, the market activity Continuously improve foreign exchange options trading is the original several foreign exchange preservation methods of development and supplement, both for customers to provide foreign exchange preservation methods, but also for traders to provide the opportunity to profit from changes in the exchange rate, with greater flexibility foreign exchange options (foreignexchangeoptions) also known as currency options, refers to the contract purchaser to pay a certain option fee to the seller, the The option to buy or sell a certain amount of foreign exchange assets at a specified exchange rate on an agreed date or within a certain period of time in the future foreignexchangeoptions is a kind of option, compared to other kinds of options such as stock options and index options, foreignexchangeoptions buy and sell foreign exchange, that is, the option buyer gets a right after paying the corresponding option fee to the option seller, that is, after paying a certain amount of option fee, the option buyer The buyer of the option has the right to buy or sell the agreed currency from the seller of the right on the agreed expiration date in accordance with the agreed exchange rate and amount agreed in advance by both parties, while the buyer of the right also has the right not to execute the said purchase and sale contract. At the same time, the buyer of the right also has the right not to execute the above-mentioned purchase and sale contract, providing individual investors with flexible tools and opportunities to profit from exchange rate changes specifically divided into two kinds of buy options and sell options buy options refer to customers according to their own judgment of the future direction of foreign exchange rate changes, pay a certain amount of option fees to the bank to buy the corresponding face value, term and execution price of foreign exchange options (call options or put options), the option expires if If the exchange rate changes in favor of the customer, the customer can obtain a higher return by executing the option; if the exchange rate changes in favor of the customer, the customer can choose not to execute the option to sell the option is the customer in a time deposit at the same time according to their own judgment to sell a foreign exchange option to the bank, the customer in addition to income from the time deposit interest (net of interest tax) can also get an option fee when the option expires, if the exchange rate changes in favor of the bank, the bank does not exercise the option. If the exchange rate changes are unfavorable to the bank, then the bank does not exercise the option and the customer may get a higher return than the interest on the time deposit; if the exchange rate changes are favorable to the bank, then the bank exercises the option and converts the principal amount of the customers time deposit into the corresponding linked currency at the agreed exchange rate For foreign exchange options, the exercise price is the exchange rate stipulated in advance when the buyer of the foreign exchange option exercises its right The exercise price is the exchange rate stipulated in advance when the buyer of the option exercises its right After the execution price is determined, within the term of the option contract, no matter how the price fluctuates, as long as the buyer of the option requires the execution of the option, the seller of the option must perform its obligations at this price For example, the option buyer bought a call option, and if the price rises during the term of the option contract and is higher than the execution price, the option buyer has the right to buy the option contract at a lower execution price Specified number of specific commodities and the option seller must also unconditionally fulfill the obligation to sell at a lower exercise price The advantage of foreign exchange options business is that it can lock in the future exchange rate, provide foreign exchange protection, customers have better flexibility and choice, in the exchange rate changes in a favorable direction, but also the opportunity to make a profit for those contracts have not yet finalized the import and export business has a very good value preservation role option buyers The risk is limited, limited to the option fee, the possibility of gaining infinite; seller profit is limited, limited to the option fee, the risk is infinite right to buy and sell foreign exchange is actually a power to buy and sell the power of the buyer has the right to buy or sell the agreed amount of foreign currency at the agreed exchange rate to the power of the seller (such as banks) within a certain period of time in the future while the power of the buyer also has the right not to execute the above purchase and sale contract options are divided into buy options and The buyer of the option (power) has the right to buy an agreed amount of foreign currency from the bank at an agreed exchange rate within a certain period of time in the future; the buyer of the option (power) has the right to sell an agreed amount of foreign currency to the bank at an agreed exchange rate within a certain period of time in the future; of course, in order to obtain the above power to buy or sell, the buyer of the option (power) must pay the seller of the option (power) Because the buyer of the option gains the right to decide whether to execute the purchase or sale in the future, the buyer of the option bears the risk of future exchange rate fluctuations, and the insurance premium is to compensate for the possible loss caused by the exchange rate risk The insurance premium is actually the price of the option. 1, the length of the option period; 2, the difference between the market spot rate and the rate agreed in the option contract; 3, the degree of expected fluctuations in the exchange rate options can be divided into two categories according to the time limit for the exercise of power: namely, European options and American options European options refers to the option buyer can only exercise the power to buy or sell a currency at the agreed exchange rate on the second business day before the expiration date of the option; and American options are more flexible The American option is more flexible and therefore costs a higher price