What Are Risk Reversals in Forex and How Do Traders Use Them? – Edge-Forex
Risk Reversals in Forex are one of the most overlooked sentiment indicators by retail traders. Yet, they are heavily relied upon by institutions, hedge funds, and currency desks to assess directional bias. In simple terms, risk reversals in forex represent the difference in implied volatility between out-of-the-money (OTM) call options and OTM put options for…