Foreign Currency Options
You don’t have to actually buy any currency to speculate in the foreign currency market. You can buy a foreign exchange or currency option contract. This contract gives you the right but not the obligation to buy or sell a specified amount of one currency for another at a specified price on (or [...]
Entries Tagged as 'FOREX Spots, forwards & Options'
Foreign Currency Options
July 4th, 2008 · No Comments
Tags: FOREX Spots, forwards & Options
FX Swaps
July 4th, 2008 · No Comments
FX swaps can be either a buy/sell swap, which means that you buy the base currency on the near date and sell it on the far date, or a sell/buy swap, which means you sell the base currency on the near date and buy it on the far date. For example, if you buy a [...]
Tags: FOREX Spots, forwards & Options
Forex - Forward Transactions
July 4th, 2008 · No Comments
Forward Transactions
If you don’t want to settle a transaction within two business days, you can also trade using an outright forward transaction. In this transaction, you trade one currency for another on a pre-agreed date at some time in the future, but it must be three or more days after the deal date. The forward [...]