U.S. dollar puts refer to selling U.S. dollar options, that is, selling U.S. dollars to the option buyer at a certain price, and being obligated to deliver the U.S. dollars to the buyer when the option expires. In this kind of transaction, the seller is the seller of the option. They must comply with the terms stipulated in the contract, otherwise they will bear the corresponding economic risks. Option buyers can buy or sell U.S. dollars at an agreed price before the contract expires, thereby obtaining investment income.

In the foreign exchange market, put options are an effective insurance strategy that can help investors reduce trading risks. Investors who sell U.S. dollar options can achieve a risk hedging effect by protecting price risks and ensuring that they can still obtain returns under adverse market conditions. In addition, the seller can also realize investment income by charging option fees.

However, it should be noted that the investment risks of selling U.S. dollar options cannot be ignored. If market prices change too quickly or fluctuate wildly, the seller may need to pay greater economic costs. In addition, market conditions may prevent transactions from being fulfilled, exposing investors to unexpected financial risks. Therefore, before conducting USD put transactions, investors should carefully understand the contract details and understand the risks and opportunities associated with the transaction.