OPTION EXPIRIES:
EUR/USD
- 1.1800 (EUR 737.28 mn)
- 1.1755 (EUR 565.70 mn)
- 1.1700 (EUR 664.57 mn)
- 1.1600 (EUR 935.93 mn)
USD/JPY
GBP/USD
- 1.3415 (GBP 421.17 mn)
- 1.3250 (GBP 781.13 mn)
USD/CHF
- 0.8000 (US$ 350.67 mn)
- 0.7700 (US$ 300.00 mn)
USD/CAD
- 1.3940 (US$ 600.00 mn)
- 1.3800 (US$ 652.00 mn)
AUD/USD
EUR/GBP
- 0.8800 (EUR 486.21 mn)
- 0.8740 (EUR 411.89 mn)
- 0.8700 (EUR 627.24 mn)
- 0.8650 (EUR 513.20 mn)
WHAT ARE OPTION EXPIRIES?
The FX possibility expiration worth ranges check with the strike costs the place possibility contracts are set to run out. These ranges embrace each calls and places.
Whenever you see “EUR/USD at 1.1600 for €4 billion” it means there’s a whole of €4 billion value of choices (calls + places mixed) which have a strike worth of 1.1600 and are expiring at that particular time (the “New York Minimize” at 10:00 AM ET).
Merchants watch these ranges as a result of they typically act as a “magnet” for the value. For instance, if there’s nothing occurring available in the market and the value is near the expiry stage, for example 30-50 pips away, what you’ll often see is the value shifting into the expiry stage. This occurs because of the hedging exercise of the market makers (banks, sellers and so forth).
As the value will get nearer to the strike worth close to expiration, these market makers should aggressively purchase or promote the foreign money to hedge their threat. This hedging exercise tends to suppress volatility and hold the value “pinned” near the strike worth till the expiration time passes.
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