Forex Options
Forex options, also called currency options, are exchange-traded derivatives granting the right, but not the obligation, to buy or sell a currency pair at a set price and date. They come as call options, allowing the holder to purchase a forex pair, or put options, enabling the sale of a pair. While exercising the option is optional, each contract has a predetermined price and expiration. In India, forex options are limited to the USD-INR pair, offering traders a tool to hedge or speculate on currency movements without mandatory execution.
Related Terms
Box Spread
A box spread is an options trading strategy combining a bull call spread and a...
Cheapest To Deliver
Cheapest to Deliver (CTD) refers to the lowest-priced security in a futures contract that a...
52 Week High
A 52-week high is the peak price of a stock or ETF over the past...
Delivery Trading
Delivery trading involves buying/selling a security and settling it by taking/giving delivery. Unlike intraday trading,...
High Beta Stocks
High Beta stocks are shares that exceed market returns but come with elevated risk. They...
Income Stocks
Income stocks are shares of companies offering steady income, usually through regular dividend payouts. Compared...
