What is IV in Options Trading: A Beginner’s Guide

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Options trading forex is a rapidly growing industry that has seen a surge in popularity in recent years, due to its flexibility and potential for high returns. In this article, we will explore what is known as ‘IV’ in options trading forex and how it can be used to inform investment decisions. Options trading is a type of derivative trading that allows investors to buy an asset at a certain price (called the strike price) at a certain point in time (called the expiration date). The option gives the buyer the right, but not the obligation, to buy or sell the underlying asset or instrument at a pre-determined price (known as the exercise price) before the expiration date. The potential profit or loss from an options trade is known as the intrinsic value (IV).

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