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FX Spot and Options

  • #21
  • Sep 24, 2017 9:19pm Sep 24, 2017 9:19pm
Quoting srt
{quote} My broker has a minimum account size of $10,000 so probably not the best for minimal use. I think Optionsxpress (Schwab company) is OK. Cost is $3.50/trade for futures options. No platform fees. I've used the platform & it's simple & clear. Better than the one I use.
Srt,

Thanks for the detailed info...

Could you kindly state the broker you are using {though the min.balance is high}.
  • #22
  • Sep 24, 2017 9:27pm Sep 24, 2017 9:27pm
Quoting srt
***Most options are American style & not European style. American can be closed @ any time but European must be held to expiration.
Wrong. European options you can trade out of b4 expiry no problem, but you must hold until expiry if you want to exercise them.

https://en.wikipedia.org/wiki/Option_style
"If The Fool persists in his Folly he will become wise." - William Blake
  • #23
  • Sep 24, 2017 11:32pm Sep 24, 2017 11:32pm
Quoting srt
{quote} 1-Nadex is a binary options broker. NOT what you want. 2-I would use a futures broker & buy futures options to get the protection. 1 futures contract is the same as 1 lot of spot forex. 3-Example 1: If you have 3.21 lots of Euro long exposure, buy 3 puts. That leaves just .21 unprotected. Small loss acceptable. 4-Example 2: If you have 2.76 lots of Pound short exposure, buy 3 calls. That's just .24 overprotected but options won't have a delta of 1 so protection is close to even. 5-I don't know any way to automate this with MT4. I think you'd...

1. Yes there is the flaw in my thinking, I was thinking in terms of Binary Options, where do you recommend for Futures options?
I live entirely from the growth of my personal trading account
  • #24
  • Sep 25, 2017 12:45am Sep 25, 2017 12:45am
Quoting VEEFX
{quote} Thanks. You have given me enough direction to continue my research. appreciate it.

Found this skim seemed interesting http://www.investopedia.com/articles.../04/101304.asp
I live entirely from the growth of my personal trading account
  • #25
  • Sep 25, 2017 1:24am Sep 25, 2017 1:24am
Quoting VEEFX
{quote} Nice Guy. Thanks for sharing.curious which ones from the bellow has made you profitable... SPOT options allow you many choices: Standard options. One-touch SPOT – You receive a payout if the price touches a certain level. No-touch SPOT – You receive a payout if the price doesn't touch a certain level. Digital SPOT – You receive a payout if the price is above or below a certain level. Double one-touch SPOT – You receive a payout if the price touches one of two set levels. Double no-touch SPOT – You receive a payout if the price doesn't touch...

Much to the surprise of many, simple fixed price, fixed duration (binary) higher or lower options. On your list "Digital SPOT"
I live entirely from the growth of my personal trading account
  • #26
  • Sep 25, 2017 2:21am Sep 25, 2017 2:21am
Quoting VEEFX
{quote} So here's a kicker. I just finished running my model for August on M5 against H1 and under timeframe across 28 pairs (I typically do not go under H1 due to limitation of backtesting). To my surprise, I received 1050 winning signals, only 155 losing signals with a winrate of 87%. Trades were made only on eurcad, eurgbp and eurnzd pairs with 20 pip SL and exit at 1:1 or at candle close (in 5 minutes) resulting in a profit of 3483 pips after 5 pips slippage factor per trade.(average profit of 3.3 pips per trade) On daily, same model had a 89%...

Amazing stats.

Sounds like digital spot, but check the costs of course, simple answer or course is the type with the lowest costs that fits your requirement.
I live entirely from the growth of my personal trading account
  • #27
  • Sep 25, 2017 9:22am Sep 25, 2017 9:22am
Quoting aaven
Guys, Just like the equivalent of Long EURUSD and Short AUDUSD would be Long EURAUD. Would this property apply to Options:? Long EURUSD Call and Short AUDUSD Call would be Long EURAUD Call? Thanks
Sorry to highjack your thread aaven. I am done with my round of questions :-)
Staying in my lane...
  • #28
  • Sep 25, 2017 9:42am Sep 25, 2017 9:42am
Quoting The Fool
{quote}Wrong. European options you can trade out of b4 expiry no problem, but you must hold until expiry if you want to exercise them. https://en.wikipedia.org/wiki/Option_style
Cme has stopped trading of American style options from January 2017.Now only European style options are traded on Cme currency futures options platform.
Practice makes a person perfect
  • #29
  • Sep 25, 2017 11:38am Sep 25, 2017 11:38am
Quoting simnz
{quote} Cme has stopped trading of American style options from January 2017.Now only European style options are traded on Cme currency futures options platform.
true, for /6E, but many CME products are American style. You can look up the specs for any CME products on their website:

http://www.cmegroup.com/trading/fx/g...s_options.html
"If The Fool persists in his Folly he will become wise." - William Blake
  • #30
  • Sep 25, 2017 11:50am Sep 25, 2017 11:50am
Quoting aaven
Guys, Just like the equivalent of Long EURUSD and Short AUDUSD would be Long EURAUD. Would this property apply to Options:? Long EURUSD Call and Short AUDUSD Call would be Long EURAUD Call? Thanks
What you are talking about are FX Vanilla Options. So a EURUSD Call, would mean, Call ccy = EUR and PUT ccy = USD. Likewise if you buy a EURCAD Put, that would mean Put ccy EUR and Call ccy CAD. You have a pay a premium on this. Of course if you do end up in the money, then you will be paid the premium. You got both American and European. American options, you got to hold till expiry, but European can allow you to get out any time so long as you don't exercise it.

I'm not sure which "brokers" allow Fx options, but most big banks offer these products, mostly for hedging purposes.

As for your question, you can buy EURUSD Call, you can buy AUDUSD Put. It doesn't mean you are long on EURAUD. The premiums vary for both these options. It would be simpler if you just bought EURAUD Calls or Puts.
  • #31
  • Sep 29, 2017 6:19am Sep 29, 2017 6:19am
Quoting VEEFX
{quote} Sorry to highjack your thread aaven. I am done with my round of questions :-)
You are more than welcome VEEFX...
  • #32
  • Sep 29, 2017 6:19am Sep 29, 2017 6:19am
Quoting jw1981
{quote} What you are talking about are FX Vanilla Options. So a EURUSD Call, would mean, Call ccy = EUR and PUT ccy = USD. Likewise if you buy a EURCAD Put, that would mean Put ccy EUR and Call ccy CAD. You have a pay a premium on this. Of course if you do end up in the money, then you will be paid the premium. You got both American and European. American options, you got to hold till expiry, but European can allow you to get out any time so long as you don't exercise it. I'm not sure which "brokers" allow Fx options, but most big banks offer these...
Much appreciated jw1981...
  • #33
  • Last Post: Oct 8, 2020 2:10am Oct 8, 2020 2:10am
Quoting srt
{quote} 1-Nadex is a binary options broker. NOT what you want. 2-I would use a futures broker & buy futures options to get the protection. 1 futures contract is the same as 1 lot of spot forex. 3-Example 1: If you have 3.21 lots of Euro long exposure, buy 3 puts. That leaves just .21 unprotected. Small loss acceptable. 4-Example 2: If you have 2.76 lots of Pound short exposure, buy 3 calls. That's just .24 overprotected but options won't have a delta of 1 so protection is close to even. 5-I don't know any way to automate this with MT4. I think you'd...
Hi mate,
Appreciate the detail description in the forum. Would you recommend broker for forex option in UK or EU? or even US. I tried searching it I didn tfind many like CFD brokers.
Thanks and Regards
Tushar
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