Concept of Options in FOREX

 ‘Options’ are used in the FOREX Market to cut down the risks or it can be said that it is one of the tool used to manage the risk. As the risk manager EPL Market is famous among the best online trading sites UAE for its online support, and EPL market which is one of the free online Trading Sites in UAE, has good understanding of the options in currency to apply the position which is unique.

When it comes to the English meaning of the word ‘option’ it means the choice, and with EPL market that allows the free online trade UAE, the trader that purchases options have flexibility over the obligations to buy or sell the assets as the premium payment under the specified conditions.

The basic concept on which the currency market FOREX works is of buying and selling of the currency done by the investors, and in this FOREX Market with the help of the free online trading Sites in UAE the option of ‘call’ gives right to the trader to buy the asset and the option of ‘put’ allows buyer to sell.

‘Call’ and ‘Put’ options

With the help of the best online trading sites UAE the Arab Emirates Dirham can purchased against the United States Dollars, so it can be said that AED is on ‘call’ and USD is on ‘put’ within the pair, while the option to sell AED against the USD then it is said AED to be on ‘put’ and USD will switch to ‘call’. The traders can take the help of day trading software UAE that is embedded with one of the best online trading sites UAE, EPL Market.  

Case Study

 There is a business man in United Arab Emirates who has to deliver an order to the United States of America today he can make 15 percent of the profit after each dollar and the currency rate fluctuates and to complete the order it will take 60 days after that he will receive the payment, and once he will receive the payment in USD in the future, so there is no guarantee that he will get the value of USD the same or it is going to plunge ruining his profit.

The options left with the trader are

·         Go for the USD spot pricing on the day of payment that will come after 60 days only

·         Hedge the current USD price that maintains the profit of 15 percent with the help of Day Trading Software UAE with the help of free online trade sites.

·          Hedge the USD with the help of strategy related to the options

The EPL Market is one stop shop solution and one of the best online trading sites in UAE and the day trading software helps with a lots of options.

Comments

  1. rohan nayakApril 2, 2022 at 12:25 AM

    This article will boost my knowledge about frex trading than you very much HDFC bank share price

    ReplyDelete

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