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Looking for a good book on options with a lot of examples

  • #1
  • First Post: Jul 20, 2019 3:07am Jul 20, 2019 3:07am
Hi guys and gals, I am looking for a good book on options trading with a lot of examples, something for a beginner, but with a lot of practical examples.

My aim is to broaden my toolbox, slightly decrease risk or even move into options.

The book might be with some math, even complicated, it would be a plus for me.

Thank you in advance.

Fred
  • #2
  • Jul 21, 2019 6:58am Jul 21, 2019 6:58am
Quoting Fred-IV
Hi guys and gals, I am looking for a good book on options trading with a lot of examples, something for a beginner, but with a lot of practical examples. My aim is to broaden my toolbox, slightly decrease risk or even move into options. The book might be with some math, even complicated, it would be a plus for me. Thank you in advance. Fred
Since I am not allowed to post any web links, I have sent you PM giving you two links for free web sites on fx options buying and fx options selling. The websites gets rid of ridiculous options glossary and you can easily compare spot fx with fx options. Books will confuse you.

You just start paper trading fx options on IGindex, Saxobank or Avaoptions .

IGindex spread is 6 pips while futures options spread is 2 pips. I trade only CME fx futures options and not any OTC options. But for fx futures paper trading you can get only two weeks paper trading account from a futures broker because of CME data charges. OTC fx options paper trading has no such limits.
Practice makes a person perfect
  • #3
  • Jul 22, 2019 5:32am Jul 22, 2019 5:32am
Quoting simnz
{quote} Since I am not allowed to post any web links, I have sent you PM giving you two links for free web sites on fx options buying and fx options selling. The websites gets rid of ridiculous options glossary and you can easily compare spot fx with fx options. Books will confuse you. You just start paper trading fx options on IGindex, Saxobank or Avaoptions . IGindex spread is 6 pips while futures options spread is 2 pips. I trade only CME fx futures options and not any OTC options. But for fx futures paper trading you can get only two weeks paper...

Thank You!!!!

Links I received from you are very, very good, simple, easy to understand, taught by a pro I suppose and ... free (surprisingly

This is it, I will read this and re-read many times, what I would like to have too is a lot of examples, if you have a similar source I will be grateful. Especially for FX options, maybe this is a good solution for smaller volatility nowadays.

Are CME FX Futures options available at mentioned brokers?

Again thank you!
  • #4
  • Jul 22, 2019 7:07am Jul 22, 2019 7:07am
Quoting Fred-IV
{quote} Thank You!!!! Links I received from you are very, very good, simple, easy to understand, taught by a pro I suppose and ... free (surprisingly This is it, I will read this and re-read many times, what I would like to have too is a lot of examples, if you have a similar source I will be grateful. Especially for FX options, maybe this is a good solution for smaller volatility nowadays. Are CME FX Futures options available at mentioned brokers? Again thank you!
1. Those are written by me. It's my passion to share my 35-year experience with highly motivated learners.

Fx future options provide no scope for making money for retail traders for bucket shops, brokers, educators, signal sellers, advisors etc. So it remains shrouded in mystery largely on the web because of lack of interest in promoting fx options among retailers.

2. My relevant threads on FF:

https://www.forexfactory.com/showthread.php?t=915355
https://www.forexfactory.com/showthread.php?t=921319 (you can find a few examples here)
https://www.forexfactory.com/showthread.php?t=928217 (my preferred trading strategy for buying of options)

3. Examples: You will understand more by doing it rather than reading it. Since you know fx trading, just start paper trading first OTC options on IGindex and then shift to futures. It will hardly take 10 minutes for you to get into paper trading of OTC options because IGindex also refrains from introducing complex strategies that confuse the traders.

4. Futures and spot fx: No big difference. Majorly it's pricing because futures collects in advance swaps fee (and returns it as well if you liquidate the contract before quarterly maturity,) while spot fx brokers make a handsome income from swaps alone - if not for not trading against the traders. Almost matching the interest income of credit card issuers (for late payments)

5. Futures use a standardised contract of $125,000 (EurUsd) while fx spot brokers can allow trading of even $1000 contract. So you need to have sufficient funds to buy options (around $1,000) and $25,000 to enjoy credit facility from brokers to sell options.
Practice makes a person perfect
  • #5
  • Jul 23, 2019 11:51am Jul 23, 2019 11:51am
Quoting simnz
{quote} 1. Those are written by me. It's my passion to share my 35-year experience with highly motivated learners. Fx future options provide no scope for making money for retail traders for bucket shops, brokers, educators, signal sellers, advisors etc. So it remains shrouded in mystery largely on the web because of lack of interest in promoting fx options among retailers. 2. My relevant threads on FF: https://www.forexfactory.com/showthread.php?t=915355 https://www.forexfactory.com/showthread.php?t=921319 (you can find a few...
Thank you again!

I is an honour to be guided by you, your knowledge and website is outstanding - simple, easy, thank you again. I am on holidays now (at the same time have an awful flu, wrrr...) and after holidays I will do exactly as you said. I can more or less "easily" spot places on the chart where there will be very probable directional move, and because the average daily range is small now - I want to try options, using preferably M5/M15 charts. The underlying instrument - can be anything, even stocks or indexes (no idea how to trade though something outside currencies).

Thank you again, for your excellent resource.

For all interested, it is (hopefully I will not violate any rules, no ties with the owner - only real gratitude for this excellent resource): fxstartup.tradingjobschool.org
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