What are some of the advantages to selling FX Options? What type of strategies can investors employ to hedge their currency exposure or trade their views? Join John Jagerson, a renowned author and Forex trader, as well as founder and contributor to LearningMarkets.com, as he explores different strategies available to FX Options sellers and their unique benefits. When selling options, the market does not have to move to make profits. Underlying prices can remain relatively flat as long as it does not cross your break-even point and you could still be profitable. Time decay works in your favor, which means that as the option nears expiration, the premium or cost falls. As the option writer or seller, melting time decay is an advantage. Options are as flexible to market conditions as outright spot forex positions. You can sell calls if you are bearish on a particular pair or sell puts if you are bullish. FX Options provide you with exposure to rate movements in the global foreign currency market and can be easily traded through all options-enabled brokerage accounts. These exchange listed securities are cash-settled in U.S. dollars and have a European style exercise.
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Duration: 9m 44s
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