Wednesday, June 23rd, 2021

How do Foreign Currency Options Work?

Options trading and all of its advantages can be applied to stocks, commodities, futures and foreign currency trading. How do foreign currency options work and how can you make money in Forex options trading?
Foreign Currency Options
Foreign currency options trading follows the same rules and tactics as stock options trading and commodity [...]

Puts on Emerging Market Currencies

While Europe and especially the French concern themselves with terrorism, emerging economies deal with rising political risk. Bloomberg Business writes about declining currencies in these countries. Brazil is a prime example.
Brazil’s real led emerging-market currencies lower amid political turbulence fueled by the arrest of one of Latin America’s top bankers [...]

Euro versus Yuan

Over four decades the Chinese economy has grown at a frenzied pace, outdistancing individual European nations. Today the Chinese economic miracle is a bit tarnished as investors distrust the stats provided by Chinese leaders. The point of this for Forex traders is that the Euro is likely to rise based on [...]

Trading Options on the Euro

The Greek debt crisis gets worse and worse. And the Euro takes a hit every time Greece edges closer to exiting the European Union and monetary union. How does one go about trading options on the Euro in this situation? The LA Times writes about dollar gains against the euro.
U.S. [...]

Options Euro Trading

The Greek debt crisis appears to winding down to a Greek exit from the European Union and from the European Monetary Union. As such Forex traders are hedging their bets with Euro options trading. suggests selling option strangles on the Euro.
There is substantial risk of loss in trading futures and [...]

War in Gaza – Forex Options

There is war in Gaza again. And for those who do business internationally it is time to buy foreign currency options to hedge currency risk. The Middle East seems to continually be at war or the center of political and social unrest. Such is the case again as the Israeli military [...]

Time for Puts on the Ruble

It is time for puts on the Ruble as Russia keeps its troops on the Eastern border of Ukraine and sends its operatives into the neighboring country to cause unrest. Sanctions by the EU and USA as well as the threat of a Russian occupation of a neighboring country have driven the [...]

Trading Options on Currency

Trading options on currency is a common means of hedging risk in international business transactions. Trading options on currency works the same as stock options trading and trading options on commodities. A trader buys calls or puts on one currency with another. But, in the case of trading options on [...]

Options Trading Volatility

The talk these days in options trading seems to be all about volatility. Options trading volatility is nothing new. The prime reference for options trading volatility is the VIX. According to the CBOE web site, “The CBOE Volatility Index® (VIX®) is a key measure of market expectations of near-term volatility conveyed [...]

Options Trading on the American Economic Recovery

When the chairman of the Federal Reserve said that the Fed was going to phase out its stimulus program stocks fell. Then everyone seems to have remembered that Mr. Bernanke said that the Fed would phase out its stimulus program based on a continued economic recovery and stocks rose again. Given the uncertainty that often [...]

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