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How do forex options affect forex market?

In: Stock Market, Currency Trading, Foreign Exchange (Forex) [Edit categories]

Answer:

Traders defend from or try to drive prices to a certain pair price in order to trigger or not trigger an option level.

So, by definition option levels affect the cash forex spot market. Some want the option to trigger and some do not. And so, the tug of war goes on.

First answer by Currencio. Last edit by Currencio. Contributor trust: 29 [recommend contributor ]. Question popularity: 3 [recommend question].

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