(JPY) and the Swiss franc (CHF). Ladder Options - This option is similar to the Ratchet/Cliquet option, except that gains are locked in when the asset hits predefined price levels. Knock-ins/outs usually call for delivery of the underlying asset, unlike digitals which are settled in cash. Traders should use caution when trading exotic currencies and be aware of the higher spread when computing possible gains. Exotic currency pairs An exotic currency pair includes a major currency and the currency of a developing economy (such as Brazil or South Africa).
Lets look at an example: In this case, the Pound Sterling is the base currency and fx forex calendar the Japanese Yen is the" currency. This would be the lowest purchase price in the case of a call, and the highest sale price in the case of a put. After the 30 day period has elapsed, the seller must enter into an option agreement with the buyer according to the terms chosen by him. Compound Options - This is simply an option on an existing option. Eurhkd.01 100.01, eUR 100,000 5 Monday 00:05 - Friday 23:59 Daily 00:00 - 00:05 eurhuf.01 100.01 EUR 100,000 5 Monday 00:05 - Friday 23:59 Daily 00:00 - 00:05 eurmxn.01 100.01 EUR 100,000 5 Monday 00:05 - Friday 23:59 Daily. This means we are buying the base currency the euro, and simultaneously selling the" currency the US dollar.
Hauptwährungspaare, Nebenwährungspaare und exotische
Learn about major, minor and exotic currency pairs at SharpTrader
How to Trade Exotic Currency Pairs Market Traders Institute
Exploring Exotic Currency Pairs - Admiral Markets