Forex traders buy hedging tools to cope with potential extreme fluctuations.

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Maritime Finance News: On March 17, foreign exchange traders are heavily buying safe-haven instruments to prepare for potential extreme volatility. They are closely monitoring developments in the Middle East and getting ready for what may come next. After the initial shock of the outbreak of war and oil prices soaring to $100 per barrel, investors are taking advantage of this relatively calm period to buy options that have a very low probability of occurring but could yield substantial returns if exchange rates suddenly move in one direction. Demand for hedging options against extreme exchange rate fluctuations, such as butterfly options, has increased, with demand for EUR/USD options reaching its highest level in 11 months in early March. (Jin10)

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