The Forex option is a currency agreement that gives the buyer the Forex options the right, but not the obligation, to buy or sell a specific Forex contract at a specified price no later than the expiration date. The amount that a buyer pays for the Forex option is known to the Forex option seller for the rights of the Forex option contract is known as the “Bonus” of the Forex option.
The buyer or the owner of the option in foreign currency has the option to sell the option contract in the foreign currency before it expires, or he can decide to keep the option contract in foreign currency until the expiration date and exercise his right to take a position. In the base currency. Using the foreign exchange option and taking the next primary position in the spot foreign exchange market is called “allocation” or “allocation” of the spot position.
The only primary responsibility of the foreign currency option buyer is to pay the premium to the seller when purchasing the foreign currency option. Once the premium is paid, the owner of the foreign currency option does not assume any additional responsibility until the foreign currency option is compensated or exhausted.