Forex Investment and Currency Trading

Options are not a simple investment vehicle and the terminology can be confusing.
Options may be used for speculation—to make a profit—or as a hedge— to protect a position maintained in the normal course of one’s business, if you hedge a speculative spot FOREX position with options, it is considered a speculative hedge. It is only [...]

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Foreign Currency Options
You don’t have to actually buy any currency to speculate in the foreign currency market. You can buy a foreign exchange or currency option contract. This contract gives you the right but not the obligation to buy or sell a specified amount of one currency for another at a specified price on (or [...]

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FX swaps can be either a buy/sell swap, which means that you buy the base currency on the near date and sell it on the far date, or a sell/buy swap, which means you sell the base currency on the near date and buy it on the far date. For example, if you buy a [...]

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