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
Deferred Tax Asset
Deferred tax Asset in financial statements denotes future tax assets stemming from temporary differences.This arises...
Gamma
Gamma (Γ) is a second-order derivative that measures the rate of change of an option's...
Asset Allocation
Asset allocation is a strategy where an investor determines how to distribute their investments across...
Post Closing Session
Post Closing Session involves trading securities outside regular market hours. In India, regular trading runs...
After Market Order (AMO)
After Market Order is an instruction directing a broker to place the order at the...
Equity Trading
Equity trading involves buying and selling equity shares in secondary markets, via stock exchanges. Traders...
