The currency derivatives at Olymp Trade
First, I want to tell you what currency derivatives are. They are the contracts thanks to which you can exchange currencies at a current exchange rate at a certain time in the future.
We distinguish two types of currency derivatives. The first one is the call order (up). This one allows you to buy an asset. The second one is called the put order (down) and allows you to sell a given instrument.
Trading the currency derivatives on the Olymp Trade platform
To trade the currency derivatives you will have to follow just a few steps. You need to specify the time of the expiry. After that time the transaction finishes.
Then, you have to decide on the amount you would like to invest in a single trade.
Last but not least, you must click one of two buttons. One is green and signifies a call order, the other one is red and describes a put order.
Selling a currency derivative before the expiry
Olymp Trade offers the possibility of selling an order before the end of the expiry time. There are two ways of doing it. You can click the opened transaction marker on the chart or the button “Sell now” which you will find on the right side of the platform in the trades field.
You must be, however, aware of the fact that you will most likely lose some money selling a currency derivative beforehand. You have to analyze the market carefully and decide is it better to wait a little more or sell instantly and lose less than at the end of the transaction.
Enjoy the trading!
Pros and Cons of Trading Currency Derivatives at Olymp Trade👍👎
- 🔄 Diversified Trading: Trading currency derivatives allows for a diversified trading portfolio.
- ⏰ Flexible Timeframes: You can set the expiry time for each trade, offering flexibility to traders.
- 🔄 Early Exit Option: Olymp Trade allows selling an order before expiry, which can limit potential losses.
- 💵 Potential Losses: There’s a risk of losing the invested amount in trading, especially if the market moves against your prediction.
- ⏳ Time-Dependent: Each derivative has an expiry time, which can be limiting if the market moves favourably after this time.
- 🧩 Complexity: Understanding and effectively trading currency derivatives require some knowledge and experience.
|Call Order (Up)||Allows you to buy a derivative, predicting the asset’s value will rise.|
|Put Order (Down)||Allows you to sell a derivative, predicting the asset’s value will drop.|
Q&A Regarding Currency Derivatives at Olymp Trade🎯
- Q: What are currency derivatives?
- A: Currency derivatives are contracts that allow you to exchange currencies at a specific future exchange rate.
- Q: What is a call order?
- A: A call order allows you to buy an asset, predicting that its value will increase.
- Q: What is a put order?
- A: A put order allows you to sell an asset, predicting that its value will decrease.
- Q: Can I sell an order before expiry?
- A: Yes, Olymp Trade allows you to sell an order before its expiry time, potentially limiting losses.
- Q: What risks are associated with currency derivatives?
- A: Trading currency derivatives involves the risk of losing the invested amount, especially if the market moves against your prediction.
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