The forex options market started as an over-the-counter (OTC) financial automobile for large banks, financial institutions and large international companies to hedge against foreign currency exposure. Like the foreign exchange spot market, the forex options market is regarded as an "interbank" market. One should read Frequently Asked Questions at https://www.xchangeofamerica.com/ before investing in foreign currency.
On the other hand, with the plethora of real-time financial data and forex option trading software open to most investors through the internet, today's forex option current market now includes an increasingly many individuals and corporations who're speculating and/or hedging foreign currency exposure via telephone or online forex trading platforms.
Forex option trading has emerged instead investment vehicle for many traders and investors. As an investment tool, forex option trading offers both large and little investors with greater flexibility when determining the right forex trading and hedging strategies to implement.
Most forex options buying and selling is conducted via telephone as there are only a few forex brokers offering on-line forex option trading tools.
Forex Option Defined — A forex option is a financial currency contract presenting the forex option buyer the proper, but not the obligation, to purchase or sell a particular forex spot contract (the underlying) with a specific price (the hit price) on or before a particular date (the expiration date). The total amount the forex option buyer pays towards forex option seller to the forex option contract rights is termed the forex option "premium. inch