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FX > FX Option

European FX Option

Trade Type: FxOption
Trade Components: Option Data

A European FX option gives the buyer the right, but not the obligation, to exchange a set amount of one currency for another, at a predetermined exchange rate, at one predetermined time in the future. For this right the buyer pays a premium to the seller. Settlement can be either cash or physical delivery.

This example is a long European FX option to buy EUR and sell USD with cash settlement. Note that if the put / call flag is set to call, bought and sold amounts/currencies are as specified. If the put / call flag is set to put, the bought and sold amounts/currencies switch.