Trading Basics
Currency Options
A option is the right to buy or sell something in the future but not the obligation. A currency option is on an FX market.
Other Trading Basics
Bid
Traders can go short at the bid price.
The terminology is from the broker point of view, they are bidding to buy from you.
Contango
This is when the futures price of a security is above the cash price at maturity. The opposite is backwardation.
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