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ISE FX Options™ provide investors with exposure to rate movements in the global
foreign currency market. ISE FX Options are exchange-listed securities that can
be easily accessed through most major brokerage accounts that are approved for
trading equity and index options.
With ISE FX Options, you have instant access to a new investment strategy that
allows you to trade your views on the strength or weakness of the U.S. Dollar.
All ISE FX Options have U.S. Dollar-based underlying values, which are scaled
as needed to create an underlying value similar to traditional equity or index
options.
For example, if the current USD/EUR rate is .7829 (0.7829 EUR per 1 USD), the
underlying value for the ISE Euro FX Option would be 78.29. This format allows
investors to easily adopt the trading strategies they currently use for equity
and index options. ISE FX Options are cash-settled, which eliminates the need
for investors to hold the actual foreign currency. Using this approach,
investors will recognize that U.S. Dollar-strength is exhibited when a rate
increases, and U.S. Dollar-weakness when a rate decreases.
To understand ISE FX Options, sign-up now for one of our Webinars.
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