Your Questions About Forex
The following Question and Answer is brought to you by our Forex Consultant with interaction
from members of the Yahoo Answers community.
James asks…
How do forex options affect forex market?
Anybody can tell me how forex options...
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Your Questions About Forex
The following Question and Answer is brought to you by our Forex Consultant with interaction
from members of the Yahoo Answers community.
James asks…
How do forex options affect forex market?
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.
admin answers:
Typically, what happens is you will be given the difference between the strike price and the
current market price, as clearly the Writer of the Option cannot physically deliver a curreny pair
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