American Style Option
Typical US option available in foreign exchange trading, which can be taken at any moment from the time of purchase until the expiration of the agreement. An American style option is known as such because the vast majority of US options follow this rule. American style options often come at a higher premium than European style options, which can only be taken on the day it expires, because they provide investors with a greater degree of flexibility in their trade moves. Opposite of European style option. Also called American option.
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