Foreign exchange option, also known as currency option, refers to the option that the buyer of a contract buys or sells a certain amount of foreign exchange assets at the specified exchange rate on a future agreed date or within a certain period after paying a certain option fee to the seller. Foreign exchange option is a kind of option. Compared with stock options, index options and other options, foreign exchange options buy and sell foreign exchange, that is, the option buyer obtains a right after paying the corresponding option fee to the option seller, that is, the option buyer has the right to buy and sell the currency agreed by the seller at the exchange rate and amount agreed by both parties in advance on the agreed expiration date, and the buyer with the right also has the right not to execute the above-mentioned sales contract.

Example of options:

When you take a fancy to a house with a current price of 654.38+0 million yuan, you want to buy it, but you are worried that the house price will fall. Wait, but you are afraid that house prices will continue to rise. If the real estate agent agrees to pay you 20,000 yuan, then no matter how the house price rises in the future, you have the right to buy this suite for 6,543.8+0,000 yuan after three months. This is a choice.

If the house price after 3 months is 6.5438+0.2 million yuan, you can buy it at 6.5438+0.2 million yuan and sell it at the market price of 6.5438+0.2 million yuan. After deducting the expenditure of 20,000 yuan, you can get a net profit of 6.5438+0.8 million yuan. If the house price drops to 950,000 after 3 months, you can buy it at the market price of 950,000, plus the cost of 20,000, and the total expenditure is 970,000, which is more cost-effective than the original purchase of 6,543,800+0,000.

Therefore, the buyer's risk of the option is limited, limited to the option fee, and the possibility of gaining income is infinite.

Foreign exchange futures, also known as currency futures, are futures contracts that convert one currency into another at the current exchange rate on the last trading day. Generally speaking, one of the two currencies is the US dollar. In this case, the futures price will be expressed in the form of "X dollars against other currencies". The expression of the futures price of some currencies may be different from that of the corresponding spot exchange rate of foreign exchange.

To put it simply, foreign exchange futures is margin trading, which can be traded in both directions, with high risks and great returns, but it is a hot investment product in the world at present.

I hope the answer will help you. I am engaged in currency futures trading. Interested parties can contact me for further communication or consultation.