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Option – Forex Economic Dictionary

ForexZig.com October 5, 2012
Forex Economic Dictionary

Economic Dictionary

Optiona contract that gives the right but not the obligation to buy (call option) or to sell (put option) a given amount of financial instrument, for a specified price, within a defined period. Options are very changeable securities that can be used in various ways. Traders often use options to speculate, which is an extremely risky practice, whereas hedgers use options to reduce the risk of holding an asset.

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