FX Options

FX Options are innovative products to manage the Foreign Exchange risk exposure. As an importer, it is to your disadvantage if the value of the currency in which you trade increases, as your import products will become correspondingly more expensive.

Conversely, as an exporter you can find yourself at a disadvantage if currency rates fall, as you then run the risk of receiving lower than expected prices for your export products. FX options are contracts that, for a fee, guarantee a worst-case exchange rate for the future purchase of one currency for another.

The option buyer does not have the obligation to deliver a currency on the settlement date unless they exercise the option. Foreign exchange options thus protect you against unfavorable currency movements while allowing you to participate in favorable movements.

If you would like to discuss these products in further detail, please speak with your Comming Tci Investments relationship manager.