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HomeFOREXWhat are call options and put options

What are call options and put options

Call option is the term for option foreign exchange buying and selling . A buyer buys the right to buy one foreign exchange at a predetermined agreed price on a certain day in the future and sell another foreign exchange at the same time. After buying this right, the buyer must pay an option fee to the counterparty’s bank on the next working day after the transaction, and in addition, does not have any obligation.

A put option is the symmetry of a call option. The seller of the option sells a right to the other party, and the other party has the right to buy a certain foreign exchange from the seller on the expiration date of the option according to the agreed price. The seller receives an option fee paid by the buyer for selling the option.

 

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