Forex Single Payment Options Trading (SPOT) options are far easier to trade and convert into cash when investors are successful. Basically, an investor merely imagines a future movement in an exchange rate between a currency pair within a given time frame. The price of the option (premium quote) will depend upon the likelihood of the occurring scenario. Generally speaking, a higher degree of fluctuation in the exchange rate in a short period of time will command a lower premium as large fluctuations are an unlikely scenario given the long-term stability of rates.
Source: http://www.investorguide.com/igu-article-978-forex-basics-investing-in-forex-options.html
Was this Tip useful?  
Was useful  Was not useful
Copy and paste this HTML in your website to link to this page