Currency Options

Not So Foreign: Unpacking the Currency Market and USX Options Strategies
June 15, 2021
Currency Options

Not So Foreign: Unpacking the Currency Market and USX Options Strategies

Montréal Exchange

If you have already traded options on equities but are now looking for a new asset class, you might be wondering if it is possible to blend exposure to interest rates, commodities, cryptocurrencies, geopolitics, and the global economy.  In fact, you have just described the foreign exchange (FX) market and, in particular,...

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3 months ago
Impact of the Exchange Rate on Our Investments in the United States
November 12, 2019
Concepts

Impact of the Exchange Rate on Our Investments in the United States

Martin Noël

Given our proximity to the United States and/or for purposes of geographic diversification, many investors have investments in their portfolios that are priced in U.S. dollars. As with all investments, U.S. equities carry market risk, and it is important to carefully analyze securities so as to minimize, as much as possible,...

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2 years ago
Currency Options University – Part 3
September 03, 2019
Concepts

Currency Options University – Part 3

Patrick Ceresna

Part 3: Specifications of USX Options To summarize, in Part 1 we reviewed the macro drivers that influence a currency’s value, and in Part 2 we focused on the impact of those changes in the currency’s value on investors. The focus in Part 3 will be on understanding the specifications of Canadian USX options and how to size...

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2 years ago
Currency Options University – Part 1
June 20, 2019
Concepts

Currency Options University – Part 1

Patrick Ceresna

Part 1: Welcome to the world of currencies It is very common for Canadian investors to invest in American stocks. Yet, it is surprising how few retail investors understand the impact currency fluctuations have on their returns. More often than not, investors look at the price fluctuation of an asset price assuming a constant...

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2 years ago
Options Brief- Week of July 17
July 18, 2017
Currency Options

Options Brief- Week of July 17

Montréal Exchange

Unless you’ve been living under a rock, you heard that the Bank of Canada (BoC) raised interest rates for the first time in 7 years last week. The overnight rate target was adjusted to 0.75 percent, an increase of 0.25 percent (from 0.5 percent). Citing the statement release from the BoC, «recent data have bolstered the...

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4 years ago
Loonie Strength Not Likely To Continue
May 25, 2016
Currency Options

Loonie Strength Not Likely To Continue

Jason Ayres

There are few considerations for a strengthening U.S. Dollar which will inevitably push commodity prices lower and the Loonie along with it. Economic issues abroad remain unresolved U.S. Economy remains the “lessor of all evils” Continued divergent monetary policy foster a “race to the bottom” Possible...

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5 years ago
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