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broker with American style Options?

  • #1
  • First Post: Edited Sep 22, 2006 6:04am Sep 21, 2006 11:57pm | Edited Sep 22, 2006 6:04am

Hi, could anyone suggest a broker that offers currency options trading, American style. I have found few on the net but they are all letting you trade European way.

  • #2
  • Sep 22, 2006 6:08am Sep 22, 2006 6:08am
Anyone?! I'm having a problem finding one, even though I know that options are much more traded American rather than European way.
  • #3
  • Sep 22, 2006 6:35am Sep 22, 2006 6:35am
hello guys ..

last post was a long time ago about my question .. So i'de like to ask again if anyone can help answering .. Well , i'm posting it here bcoz it's nearly the same subject .. BROKER .. So ..
Do u guys know if Crown Forex is a good broker or not !!!???

waiting ur answers guys .. Thanx a lot .
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  • #4
  • Sep 22, 2006 6:53am Sep 22, 2006 6:53am
It may be that no one has had any experience with them. I, personally had no heard of them prior to this post. Website looks decent. They are located in Switzerland, so they may not accept US clients. That would limit the number in this forum that may have used them.

Sometimes the only way to tell is to take a chance. You could also research them on Google to and see in what context their name appears in the search results. I do this quite often.

Other than that, afraid I can't be of much help.
Capital Preservation is key to long term wealth accumulation
  • #5
  • Sep 22, 2006 7:04am Sep 22, 2006 7:04am
why do you care to trade american style options? the only difference is that you can exersize them early, which will hardly come into play. 99.9% of the time, it will be in your best interest to sell the option rather than exersize it.
Relax and be happy.
  • #6
  • Sep 22, 2006 7:15am Sep 22, 2006 7:15am
@coolhell:

I have tried their demo on MT4 and it's great. I mean 1 pip spread on eur/usd fixed! They seemed to me like the best broker. But only for a moment. As soon as I have worked through their agreement and policies I have figured out that it's not so pretty as it seems. Trust me you DON'T want to trade with them.

@merlin:

Well I like how that "American style" thing sounds . No really, I'm testing some strategy so I need to find a broker that will let me trade fx options American way.

fast
  • #7
  • Sep 22, 2006 9:04am Sep 22, 2006 9:04am
What the hell is American Way? Is this a cultural thing of trading Forex? Or is this a feeling of 'freedom' when trading forex? I dont get it AND im from the US. Explain what this means? And how is it different from Cananadian forex, mexico forex or any other cultural/ country/ peoples that trade forex?
  • #8
  • Edited 10:10am Sep 22, 2006 9:43am | Edited 10:10am
Quoting merlin
why do you care to trade american style options? the only difference is that you can exersize them early, which will hardly come into play. 99.9% of the time, it will be in your best interest to sell the option rather than exersize it.
While some will prefer exercising their options, American style options are more liquid because they provide more flexibility.

edit:
fx trading seems to be an Englishman's game.
  • #9
  • Sep 22, 2006 10:15am Sep 22, 2006 10:15am
@hunter101:

When you, let's say, buy call option you will not be able to exercise it before it's expirity date. That's the situation if you trade the European way. Anyway, you can sell that option any time. But by trading American style, you are able to buy the currency at any time before the expirity. You are not obligated to wait it's expired date. And that's the good point. Imagine that you have bought call option with 2 weeks life time. And at some point in time (let's say one week since you bought call option) price rocketed 200 pips from your strike price. You have paid 50 pips premium already and if you would exercise it right now you would have maid 150 pips. That is the situation if you have been trading American way. Than at the end of the expirity period price fell down 100 pips form your strike price. You have lost your 50 pips premium and made no profit. That would be if you have been trading European style.

fast
  • #10
  • Sep 22, 2006 10:39am Sep 22, 2006 10:39am
Quoting dunningduke
While some will prefer exercising their options, American style options are more liquid because they provide more flexibility.
errr, good guess, but not accurate.
Relax and be happy.
  • #11
  • Sep 22, 2006 10:50am Sep 22, 2006 10:50am
Quoting fastbusiness
@hunter101:

When you, let's say, buy call option you will not be able to exercise it before it's expirity date. That's the situation if you trade the European way. Anyway, you can sell that option any time. But by trading American style, you are able to buy the currency at any time before the expirity. You are not obligated to wait it's expired date. And that's the good point. Imagine that you have bought call option with 2 weeks life time. And at some point in time (let's say one week since you bought call option) price rocketed 200 pips from your strike price. You have paid 50 pips premium already and if you would exercise it right now you would have maid 150 pips. That is the situation if you have been trading American way. Than at the end of the expirity period price fell down 100 pips form your strike price. You have lost your 50 pips premium and made no profit. That would be if you have been trading European style.

fast
i had a hunch that you misunderstood american vs. european...

if you option goes in the money, as you described above, whether it is american or european style, you would sell the option to exit. you sell to exit, you dont exersize.

there are VERY few times you would want to exersize early, only in situations where a company will issue a dividend in the near future or a few other peculiar instances. i cant think of an instance in the currrency market, but i think there are a few.
Relax and be happy.
  • #12
  • Sep 22, 2006 11:30am Sep 22, 2006 11:30am
Is there anyone using options in forex?
Trading is a long and a short story.
  • #13
  • Sep 22, 2006 11:40am Sep 22, 2006 11:40am
@merlin:

I was talking about currency options. And in that case I would definitely wanted to exercise an option rather than to wait for it to expire.

Example:

Buy call option. Eur/usd. Current price - 1.2800, strike price 1.2800. I pay, let's say, 0.0050 premium (50 pips). My break even point is 1.2850, everything above is profit. So, lets say, after 3 days eur/usd rate is 1.2900. If I exercise option now, I'll walk away with 50 pips in my pocket. But if I wait price might go down and put me into negative (anyway I can lose just my premium). Also price might go more up, but I don't want to risk. That's why I'm asking for American style option broker.


fast
  • #14
  • Sep 22, 2006 1:55pm Sep 22, 2006 1:55pm
12 posts and still haven't got any recommendation. Interesting.
  • #15
  • Last Post: Mar 28, 2018 5:13am Mar 28, 2018 5:13am
Hello traders,
I'll try to actualize this thread.
I'm interested in forex/currency options trading.
Is there any broker you can recommend that has American style options trading?
TNX
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