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Put option

In forex, a put option is a type of financial contract that gives the holder the right, but not the obligation, to sell a specific amount of an underlying currency pair at a specified price (strike price) within a specified period of time (expiration date). The holder of the put option expects the value of the underlying currency pair to decrease in the future, and can use the put option to profit from that decrease by selling the currency pair at the higher strike price specified in the option contract. If the currency pair does not decrease in value or increases in value, the holder of the put option may choose not to exercise the option and will forfeit the premium paid for the option contract.

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