{"id":1848,"date":"2022-03-29T07:47:47","date_gmt":"2022-03-29T07:47:47","guid":{"rendered":"https:\/\/mdr.foobrdigital.com\/?p=1848"},"modified":"2022-03-29T07:47:47","modified_gmt":"2022-03-29T07:47:47","slug":"trading-forex-options","status":"publish","type":"post","link":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/2022\/03\/29\/trading-forex-options\/","title":{"rendered":"Trading Forex Options"},"content":{"rendered":"\n<p id=\"mntl-sc-block_1-0-24\">A forex option is an agreement to purchase a currency pair at a predetermined price at a specified future date. For example, say you are long the EUR\/USD at 1.40, and you feel that there is a chance that it will fall to 1.38 in overnight trading. Not wanting to risk a deeper reaction, you decide to put a\u00a0stop\u00a0at 1.3750, setting up a potential loss of 250\u00a0pips.<\/p>\n\n\n\n<p id=\"mntl-sc-block_1-0-27\">250 pips sound really painful, so you decide to use a forex option to lessen the pain. You purchase an option for the overnight hours with a strike price of 1.3750. If the EUR\/USD goes up and never touches 1.3750 overnight, you would lose the premium that you paid for your currency option.<\/p>\n\n\n\n<p id=\"mntl-sc-block_1-0-30\">If the EUR\/USD falls and touches your option and your stop loss, you would receive the profit from your option, depending on how much of a premium you paid, and you would realize the loss of your long trade on the EUR\/USD. The options profit would make up for some of that loss on your currency trade.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A forex option is an agreement to purchase a currency pair at a predetermined price at a specified future date. For example, say you are long the EUR\/USD at 1.40, and you feel that there is a chance that it will fall to 1.38 in overnight trading. Not wanting to risk a deeper reaction, you [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[401],"tags":[],"_links":{"self":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/1848"}],"collection":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/comments?post=1848"}],"version-history":[{"count":0,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/1848\/revisions"}],"wp:attachment":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/media?parent=1848"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/categories?post=1848"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/tags?post=1848"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}