Friday, July 3rd, 2015

Strategies Managing Options

All Forex traders might be aware of the options trading tool used by traders to protect against the risk of price fluctuations the value of the currency pairs that do not need to go under this concept to develop options. Let’s start with the definition of a small introduction of the option, put option is a contract that gives traders the right to sell or buy the desired amount of the underlying assets or financial claims on a specified future date fixed price on or before the date expiration of the option agreement and not an obligation that must be carried out. Option strategies are applied in the foreign exchange market to achieve three objectives: speculation, hedging and dissemination. The speculation option involves the long and short of an option without any position in the underlying asset in the forex trading platform. Hedging involves an attempt to control or manage risk through a combination of the purchase or sale of that asset or financial claim in any position acquired in the forex trading platform. Diffusion is the strategic tool of choice is applied within the options of the same type that includes the simultaneous purchase or sale of the same type of option. The combination of call and put option applied in various forms can be a good idea of the strategy of choice in exchange trading platform that provides a rational capacity to manage trades. The strategy of trading options that are very common in Forex trading platform includes calls included, astride, put protection extends like bear spread, bull spread, wing spread, choke, belts. Let’s look at the strategies covered call option, which is the first choice of merchants to change the platform operations. total requests: consists of the purchase of the specific quantity of an underlying asset such as stocks or currency pairs selected and the sale of the desired option in the pair selected currency or other right. The place position in the forex market is so covered as a concern because the investor has the stock or currency pair and the right to deliver the torque of the purchase option, which has sold and is exercised by the option holder. In the covered call strategy, the investor is willing to sell the underlying asset at a fixed price, limiting the benefits, if the price of the selected torque increases by the amount of the premium to the sale of call options. This strategy can be formulated as [(s +) + (-c)], where ‘represents the couple buy the y’-c’ represents the sale of a call option. This is the information about business strategies covered call option applied to the Forex trading platform to manage forex accounts.

About Author Linda Green and I’m very interested in financial investment and matters relating to trade in currency. The site provides relevant information on currency trading and provides regular updates of changes in currency pairs like USD / EUR via Forex account.


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