answersLogoWhite

0


Best Answer

The difference between a currency future and a currency option is the option is the amount paid is all that is at risk and with future you could lose a lot more.

User Avatar

Wiki User

10y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is the difference between currency future and currency option?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Calculus

Explain the difference between a call option and a long position in a futures contract?

The only difference between a long call option and a long futures position is the derivative itself--one of them is an option, the other is a futures contract.


What are the differences between future and option contract?

There's one main difference and it's huge: An option contract gives the person who buys it the privilege of doing whatever it is the contract is written for. A futures contract imposes an obligation on the buyer. There are also liquidity requirements and requirements to pay performance bonds in futures trading that don't exist in options trading, but the real basic difference is that an options buyer can do something and a futures trader has to.


What is the difference between free form option and crop option?

Free - from selection:. In case of free from selection we can select the part of picture in any form. Crop option:. But in crop option a picture can be selected either in square form or rectangular form.


Explain the difference between a put option and a short position in a futures contract?

Well, the first difference is the root difference between a futures contract and an option contract: in a futures contract you MUST complete the sale at the end of the contract (if you didn't buy it back before the settlement date) but in an option you CAN.Once we're past that, the short position in a futures contract--the person who has the item the contract is derived from, such as a thousand bushels of wheat--is the same as the buyer of a put. Both of them have the thing now, and will transfer title to it after settlement or exercise.


Relationship between a regular call option and a binary call option?

While the CALL options remain the same for both regular and binary options, the difference being that with binary options you don't actually own the asset you are trading on. It is based on mere speculation of the market movements.

Related questions

What is the difference between thesaurus and synonyms option?

what is the difference between thesaurus and synonym


Explain the difference between a call option and a long position in a futures contract?

The only difference between a long call option and a long futures position is the derivative itself--one of them is an option, the other is a futures contract.


What are the factors that affect currency put option and currency call option premiums?

go to yahoo stocks


What is difference between argument and option?

an argument is a disagreement between two people while an option is a preffered choice or point of view.


What is meant by currency option trading?

Currency option trading is a common term used in financial discussions between business people. They are referring to trading currencies on the market to hedge their risk.


What is the difference between a basic option car and full option car?

The difference between a basic and full option car is the basic car has just your standard options. They have roll up windows and basic radio, The full option have electric windows, car alarm, heated seats in some.


What is the difference between hedging and forward contracts?

A forward contract is an agreement between two parties to buy or sell an asset at a certain future time for a certain price agreed today. An option is an agreement between two parties for the option to buy or sell an asset at a certain future time for a certain price agreed today. The main difference is that a forward contract has to happen while an option may or may not happen depending on the value of the asset compared to the agreed price


Difference between American option and European option?

The only difference between American Options and European Options is that the American Option allows you to exercise the option anytime before and up to expiration while European options only allow you to exercise the option upon expiration. Both options can be freely bought and sold before expiration.


What is the difference between qualified and non qualified stock option plan?

I Dunnno


What is the difference between pause recording and stop recording option in macros submenu in windows word 2010?

no difference,..


How do you use option is multiple Currency in tally 7.2?

how to use multiple currency in tally


What is the difference between the Arris TM722A and the Arris TM722G modems?

The TM722G has a battery backup option.