Call and Put in Forex Options

T

Thirumalai

New Member
#1
#1
In case of Forex option, for a currencypair, one currency will be Call currency and one currency will be Put currency. For example, in a currency pair AUDUSD, Call Currency = AUD and Put Currency = USD. How can we difine the option type for this option contract, whether it is Call option or Put option?
 
A

ag_fx

Well-Known Member
#2
#2
Thirumalai said:
In case of Forex option, for a currencypair, one currency will be Call currency and one currency will be Put currency. For example, in a currency pair AUDUSD, Call Currency = AUD and Put Currency = USD. How can we difine the option type for this option contract, whether it is Call option or Put option?
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The strike price wil help you. In case you are using AUD/USD, the levels will be live 0.7700 0.7800 etc as of current market price.
In case you are using USDAUD, the prices will be 1.31etc...

Also, see the way those options are listed on exchanges. It will be clearly specified whether they are using AUDUSD or USDAUD. also, dere are certain standard conventions to quote pairs. For eg,

EURUSD,GBPUSD,USDCHF,USDJPY are some of the standard conventions.
 
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