FXDD NOW Monday, January 2 2012_BUYING OPTIONS



Can you hedge your position?
When you buy a quote?
Yes, but from what you do why would you even bother?
To hedge your position because you will not lose anything.
Then just buy the spot. Options. Foreign exchange products other than buying the actual currency in real time, you buy an option. You would buy an option to buy the currency at a rate in the future. So you would buy an option to buy this currency 200 points higher. Its just another way of buying and selling currencies. They do the same thing in equity markets.

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FXDD NOW Monday, January 2 2012_BUYING OPTIONS

Can you hedge your position?

When you buy a quote?

Yes, but from what you do why would you even bother?

To hedge your position because you will not lose anything.

Then just buy the spot. Options. Foreign exchange products other than buying the actual currency in real time, you buy an option. You would buy an option to buy the currency at a rate in the future. So you would buy an option to buy this currency 200 points higher. Its just another way of buying and selling currencies. They do the same thing in equity markets.