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When pricing delta options in the FX market the ____ numerically delta is ____ out of the money and thus ____ to buy.

January 8, 2018

Smaller delta options are deeper out of the money and cheaper to buy.

10-delta options are always cheaper than 25-delta options.

Normally the delta for a put is between -1 and 0 with -0.5 being ATM (At The Money).

Normally the delta for a call is between 0 and 1 with 0.5 being ATM.

FX traders quote both in absolute terms.

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From → Asset Valuation

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