Important Disclaimer
for U.S. Residents
  IFSCL Services Options
Option Buyer
The buyer, or holder, of an option can choose to exercise his right and take a position in the underlying spot currency. On the expiration date, the call buyer can exercise his right to buy the underlying spot position and the put holder can exercise his right to sell the underlying spot position. Should the buyer choose to exercise his rights on expiration, he will be assigned a spot position equivalent to the strike price and notional amount. In most cases though, the option buyer does not exercise, but instead offsets the option in the market before expiration, if it has any value.

Option Seller
Option sellers (i.e., those who sell options that they didn’t previously own) are also called option writers or grantors. The seller could be a trader or hedger and
is contractually obligated to take the opposite spot position if the buyer exercises his right. In return for the premium, the seller assumes the risk of taking a possibly adverse spot position.
     

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