I'm invested in foreign currencies, and I would ...

I'm invested in foreign currencies, and I would like to protect some of my investments. I heard that using options on FOREX can help me achieve that. What type of options should I use?


Answer this question
Share Send to a friend Watch Report
 

Best Answer

 
yuval
9 answers
24 thumbs up

The subject is too large to be answered in such media. Thre are vanilla options to protect against rate change and more exotic which you can reduce the premium paid by limiting the protection range (e.g. barrier options). There are many sites which explains these options see for example: http://gm.bankofny.com/Markets_CD.asp If you want to protect yourself from volatility change or interest rates change you can invest in strategies, which are combinations of options. See also: http://www.investopedia.com/university/options/

Posted 3 years ago ( permalink )
In reply to elth's question
yuval was invited by Yedda to answer this question.

Rated as
Best Answer
0
5
  Report Abuse  

Helpful?

line
line
line


 

All Answers

Order by
 
elth
30 answers
52 thumbs up

Thanks, i'll have a look in those sites. 

Posted 3 years ago ( permalink )
In reply to yuval's answer
Rated as
#2 out of 6
0
0
  Report Abuse  

Helpful?

line
line
line



 
Biancao
9 answers
14 thumbs up

go to

www.indiplan.com they also have some great investmen plans to suite your needs
Posted 1 year ago ( permalink )
In reply to elth's question
Rated as
#3 out of 6
0
0
  Report Abuse  

Helpful?

line
line
line



 
tradingbaby
7 answers
8 thumbs up

yeah right! The subject is too large.. It is broad to be tackled here.. But anyway, www.investopedia.com will be a big help for you.. There are lots of topics there about options.. And if you would like to learn some stuff about forex, forex forums would be a useful tool for you.. Good luck! Wink

Learn Trading 
Posted 10 months ago ( permalink )
In reply to elth's question
Rated as
#4 out of 6
0
0
  Report Abuse  

Helpful?

line
line
line



 


Within an option trade, the traders purchase the possibility to make a future exchange of currencies, at a previously established rate (strike). A premium constitutes the payment for that option, which is calculated by various variables, such as the established exchange rate, and it is measured in percentage.

Main types of options:

Call Option – a contract which gives the trader the right to purchase the currency at an established rate and time.  
Put Option – a contract which gives the trader the right to sell the currency at an established rate and time. If the other side executes the option, the seller must purchase the base currency.

Get more at free Forex Tutorial here....
Posted 4 months ago ( permalink )
In reply to elth's question
Rated as
#5 out of 6
0
0
  Report Abuse  

Helpful?

line
line
line



 

if you learn to protect your funds, please consider professional trader.

I make 3% to 10% profit per month through a good asset company via swiss broker. If you are interested please consider HSFX Asset Management. They are simply the best , great customer support! below is their website and the weekly forward updated statement.

http://tinyurl.com/assetmanagement
http://www.tinyurl.com/PortfolioStatement
Posted 1 month ago ( permalink )
In reply to elth's question
Rated as
#6 out of 6
0
0
  Report Abuse  

Helpful?

line