Foreign exchange (FX) option expiries for March 24, 10:00 Eastern Time, via Depository Trust & Clearing Corporation (DTCC) indicates the amount of foreign currency options that will expire at a specific time in the global foreign exchange market.
The FX market is the largest financial market globally, with daily trading estimated to be around $6.6 trillion. The market involves buying and selling currencies with the goal of making a profit from the fluctuations in exchange rates. FX options are contracts that provide the holder with the right but not the obligation to buy or sell a currency at an agreed-upon exchange rate and time.
Traders use FX option expiries to predict potential price movements in the foreign exchange market. Here is a breakdown of the expiries for March 24, 10:00 Eastern Time, via DTCC.
EUR/USD
The EUR/USD is the most traded currency pair globally, comprising around 24% of the global foreign exchange volume. The EUR/USD is the exchange rate between the euro and the US dollar, wherein one euro is equivalent to a specific amount of US dollars.
EUR/USD options worth the following amounts expired on March 24, 10:00 Eastern Time:
– 1.0675-80: 627 million euros
– 1.0700-10: 1.4 billion euros
– 1.0800: 1.6 billion euros
– 1.0850: 539 million euros
– 1.0875: 509 million euros
– 1.0890-10: 656 million euros
USD/JPY
The USD/JPY is the second most traded currency pair globally, comprising around 13% of the global foreign exchange volume. The USD/JPY is the exchange rate between the US dollar and the Japanese yen, wherein one US dollar is equivalent to a specific amount of Japanese yen.
USD/JPY options worth the following amounts expired on March 24, 10:00 Eastern Time:
– 130.00: 830 million US dollars
– 131.00: 592 million US dollars
– 132.95-00: 1.3 billion US dollars
AUD/USD
The AUD/USD is the third most traded currency pair globally, comprising around 5% of the global foreign exchange volume. The AUD/USD is the exchange rate between the Australian dollar and the US dollar, wherein one Australian dollar is equivalent to a specific amount of US dollars.
Unfortunately, no AUD/USD options expired on March 24, 10:00 Eastern Time, via DTCC.
USD/CAD
The USD/CAD is the fourth most traded currency pair globally, comprising around 4% of the global foreign exchange volume. The USD/CAD is the exchange rate between the US dollar and the Canadian dollar, wherein one US dollar is equivalent to a specific amount of Canadian dollars.
USD/CAD options worth the following amounts expired on March 24, 10:00 Eastern Time:
– 1.3600-05: 606 million US dollars
– 1.3620-30: 1.1 billion US dollars
EUR/GBP
The EUR/GBP is the fifth most traded currency pair globally, comprising around 3% of the global foreign exchange volume. The EUR/GBP is the exchange rate between the euro and the British pound, wherein one euro is equivalent to a specific amount of British pounds.
Unfortunately, no EUR/GBP options expired on March 24, 10:00 Eastern Time, via DTCC.
It is essential to note that FX option expiries do not determine the direction of the foreign exchange market. They are only one of many factors that traders consider when making a trading decision. Other factors that can influence the market include economic data releases, political events, and central bank decisions.
Moreover, option expiries do not necessarily mean that there will be a significant movement in the foreign exchange market. The market can remain stable even after the expiry of options as traders can roll over their positions or take profits at any time.
Overall, FX option expiries provide insights into the potential risks and opportunities in the foreign exchange market. However, traders should not base their entire trading strategy on option expiries alone but should instead consider them as a part of a more comprehensive analysis of the market.