| Currency options give the holder the right to buy or sell a specific amount of currency, at a specific rate of exchange, on or before a specific future date. The premiums are calculated based on the volatility of the two currencies, the rate you specify you would like to deal at under the option or the strike price, and the period of the option.
While HSBC covers only standard currency options, obtaining a currency option with us is straightforward and easy. Simply tell us the amount and currencies involved, the rate at which you would like to buy or sell the currency or the strike price, the expiry date, and whether you would like to exercise the option only on the expiry date or at any time up to the expiry date. |
