Foreign Currency trading (Forex trading) involves many types of dealings. One very popularly used transaction is the Forex option. A currency contract provides the Forex trader the right either to buy or sell an underlying Forex spot contract from either an option seller or buyer up to a specified date, called the expiration date, as well as an agreed price, called the strike price is called the “Forex option”. A premium is the amount the option buyer pays the option seller for the option rights only. Stage system an option it is well known that the trader has no obligation to buy the currency if he deems it excessive.
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