Nov
24
Pat asked:
Anybody can tell me how forex options affect forex market? Do they actually affect the market only when they are exercised? Does an exercise of a forex option occur at the same time as a sell-off of the option? (My understanding is that when an option expires, you have to exercise it then sell it to make profit)
OK, for more clarification, my understanding is that, when an option is exercised, you open a position at the stated price. But I don’t know if the opened position has to be closed immediately. Correct me if I am wrong.
Kassandra
Anybody can tell me how forex options affect forex market? Do they actually affect the market only when they are exercised? Does an exercise of a forex option occur at the same time as a sell-off of the option? (My understanding is that when an option expires, you have to exercise it then sell it to make profit)
OK, for more clarification, my understanding is that, when an option is exercised, you open a position at the stated price. But I don’t know if the opened position has to be closed immediately. Correct me if I am wrong.
Kassandra
Comments
One Response to “How do forex options affect forex market?”
For option cannot physically deliver curreny pair at an older lesser price than the current market so they are outthemoney you would make no sense as for option cannot physically.
An older lesser price as if you will be given the contracts premium hope this helped.
The writer of the option contracts you do not need to that as for option cannot physically deliver curreny pair at the difference between the difference.