Skip to main content
Option Contract
Written by Tony Crivelli
Updated over a week ago

Options are a more sophisticated way to hedge currency exposure risk as they provide protection like a forward but also allow for participation in most cases.

This means that if the market moves favourably you can take advantage and buy some or all at the better rate.

Of course, there is a downside and this generally comes in the form of a less favourable protection rate and sometimes a premium which is not refundable, much like an insurance contract. It is advisable to obtain reliable advice before taking an option contract.

Did this answer your question?