Trading foreign currency options india restaurant
For tradjng right, a premium is paid to the seller, the amount of which varies depending optionss the number of contracts if the option is bought on an exchange, or on the nominal amount of the option if it is done on the over-the-counter market. By incorporating leverage, forex options magnify returns and provide a set downside risk. Tradinv, currency trading options can be held alongside the underlying forex pair to lock in profits or minimize risk.
In this case, limiting the upside potential is usually restaurat for capping the downside as well.Because options contracts implement leverage, traders are able to profit from much smaller moves when using an options contract than a traditional retail forex trade would allow. It is similar to the Stock Futures and Options trading foreign currency options india restaurant the underlying happens to be currency pair (i.e. USDINR, EURINR, JPYINR OR GBPINR) instead of Stocks.
Currency Futures and OptionsCurrency Futures and Currency Options refer to a standardized foreign exchange contract traded on a recognized stock exchange. ICICI Bank offers trading facility on both Futures and Options through the electronic trading platform.