OTC (Over the Counter) Currency options are defined as bilateral contracts,oakley españa, the value of which is derived from the value of some underlying asset or security,Related articles:
Polo Ralph Lauren Both short term trading and long term trading can be effe
http://gafascarreraoutlet.webs.com/,Polo Ralph Lauren,Related articles:
Lentes ray ban Can Easy To Use Software Also Be Secure
http://gafascarreraoutlet.webs.com/. A Derivative covers any transaction where there is no movement of principle,gafas sol carrera, and where the price performance of the derivative itself is driven by the price of the underlying asset,gafas carrera segunda mano.
It is especially this aspect (the no movement of principle) that makes Derivatives such useful instruments to hedge other exposures and to do specialized risk management,Lentes ray ban.
Foreign exchange derivatives are the following: Currency Options Forex Futures Swaps and Forwards
Foreign Exchange derivatives can be traded over the counter or on organized exchanges – On organized exchanges fixed and prescribed contracts are bought and sold,gafas sol ray ban. An OTC derivative instrument is tailored to customer’s specifications regarding the specific dates,oakley gafas, currencies and total amounts involved,oakley jawbone.
One of the main differences between exchange traded currency derivatives and OTC currency derivatives is the credit risk,chanel España. In the OTC Market each party takes on the risk of the other party – On an exchange,catalogo gafas ray ban, the exchange’s clearinghouse covers the parties’ risk,chanel España. In the OTC Market,Gafas ray ban, because of the very specific contract details,gafas sol ray ban, liquidity may be very low,carrera, i,Gafas ray ban.e,bolsos chanel. it may not be easy or possible to trade with such an instrument if the right party cannot be found,Lentes ray ban.
A Currency option gives the holder the chance to fix the rate of exchange that will apply to a future exchange transaction,oakley españa. The Option writer (the seller of the option) must guarantee the rate chosen by the holder,gafas carrera españa. For this guarantee a fee is charged,A Quick Overview Of Otc Currency Options,gafas carrera. The holder of the option has all the rights implicit to the option but only one obligation – he must pay the fee,gafas carrera imitacion.
The Option writer or seller has all the obligations,gafas carrera baratas, but no rights,gafas de sol oakely. In return for the fee he must have the underlying currency on hand (in stock) in case the holder chooses to exercise his option,gafas sol carrera.
Currency Options can also be exercised at expiry or they can be sold back or sold on at any time during the duration of the transaction for fair value,gafas ray ban online, which depends on the underlying currency price movements,gafas ray ban modelos. Alternatively they can be physically delivered,A Quick Overview Of Otc Currency Options,chanel online.
Currency Options is more flexible than a traditional forward outright foreign exchange transaction and gives the holder several alternatives:
Whether,bolsos chanel España, to exercise the option,bolsos chanel?
When to exercise the option,ray ban españa?
How much to exercise,Ralph Lauren España?
At what price to exercise,polo ralph lauren tiendas?
This is a very simple and concise explanation of what is OTC Currency Options,ray ban españa.