If you are long AUDUSD then why buy a Call option at all? It seems like the Put is enough. If the interest you will collect (over the lifetime of the option) is more than the cost of the Put then you've got a winner. What am I missing?
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DislikedIf you are long AUDUSD then why buy a Call option at all? It seems like the Put is enough. If the interest you will collect (over the lifetime of the option) is more than the cost of the Put then you've got a winner. What am I missing?Ignored
Dislikeddo the mt4 brokers here in the u.k, pay interest ? i think not. iam with alpari u.k., but they dont pay any carry interest. does anyone know what the deal is here in the u.k. ?Ignored
DislikedHe sells the Call option in order to get back the money spent on buying the Put Option that is used to hedge the long SPOT AUDUSD.
If AUDUSD goes up, he gets nothing from bought Put, makes loss on the sold Call, but gets profit from SPOT AUDUSD long to cover it, plus the interest.
If AUDUSD goes down he gets profit from bought Put to cover loss on the long SPOT, plus premium from the sold Call option.Ignored
Dislikedthats actually kind of genious.. Anyone know a metatrader brok er that allows this type of trading? Does saxobank or ikon? THoughts anyone?Ignored