In terms of options, there are usually three foreign exchange options in the world: American options, European options and Bermuda options.

European option: refers to the option that the buyer must exercise on the option expiration date. In Asian financial markets, it is stipulated that the time for exercising options is 14: 00 pm Beijing time on the expiration date of options. After this time, no matter how valuable the option is, it will automatically expire.

For example, customers expect EUR/USD to rise gradually from 1. 1500 to 1. 1700 within two weeks. So he also bought a European option with a face value of 654.38+ million euros for two weeks. The exercise price was 1. 1.500, and the option fee was only 0.65% (that is, 650 euros was paid). However, the European option cannot be exercised before the expiration date of 14: 00 pm Beijing time. You can't exercise it at will like American options. Assuming the option expires at 1. 1700, the customer can make a profit of 1252.50 USD (2000-650x1.1500 =1252.50).