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New to Forex Options

  • #1
  • First Post: Nov 22, 2006 1:38pm Nov 22, 2006 1:38pm
Greetings,

Does anyone have experience trading forex options. I am looking into trading forex options and I was wondering which broker any of you have used to trade forex options.


Also, I understand most forex options are "offset" before they expire, but if you do decide to exercise a forex option how would you do so? I mean who would make the deal at the strike price and where could i manage the trade at? Is this all done in the same account with the same broker??

Thanks in advice for your response.
  • #2
  • Nov 22, 2006 6:38pm Nov 22, 2006 6:38pm
Anyone.....
  • #3
  • Nov 22, 2006 7:07pm Nov 22, 2006 7:07pm
i think oanda has options but i have not used it nor do i know much at all about options, i believe its where you predict the price to be reached with in a certain time, it seems easier to just trade forex its the same thing with out predicting the time.
Egyptian and proud of it!
  • #4
  • Nov 22, 2006 10:36pm Nov 22, 2006 10:36pm
Yeah I have looked at the oanda box options. Those are not the type I am talking about. I am talking about trading forex options with a broker.
  • #5
  • Nov 23, 2006 7:26am Nov 23, 2006 7:26am
I's say the only options worth trading are the ones which you can sell short as well as buy. Brokers will be quick to sell you their inhouse options but if they're not willing to buy them back - know the odds are against you. The only options I'd consider are the vanilla options traded on an exchange.
  • #6
  • Nov 23, 2006 8:35am Nov 23, 2006 8:35am
faure thanks for your response. Yes I am trying to understand what exactly the vanilla options are. What is the difference between the vanilla options and I guess just the regular options.

Also Once my option expires, what if I dont want to sell if back, but instead I want to exercise it, how does this work??
  • #7
  • Nov 23, 2006 8:53am Nov 23, 2006 8:53am
Hi there,

I think saxobank offer this, but Im not sure, check out their website.

FT

Quoting Crestwind
faure thanks for your response. Yes I am trying to understand what exactly the vanilla options are. What is the difference between the vanilla options and I guess just the regular options.

Also Once my option expires, what if I dont want to sell if back, but instead I want to exercise it, how does this work??
  • #8
  • Nov 23, 2006 10:36am Nov 23, 2006 10:36am
Saxobank is offering forex "option" and also others that include "forward outwright", "place order" and of course "spot". The option that they offered is based on the american style. There are 2 types of forex options:

 

  1. American-style – This type of option can be exercised at any point up until expiration.
  2. European-style – This type of option can be exercised only at the time of expiration.

* An excerpt from investopedia.

  • #9
  • Last Post: Nov 23, 2006 5:10pm Nov 23, 2006 5:10pm
Quoting stealth_hunterz
Saxobank is offering forex "option" and also others that include "forward outwright", "place order" and of course "spot". The option that they offered is based on the american style. There are 2 types of forex options:

  1. American-style – This type of option can be exercised at any point up until expiration.
  2. European-style – This type of option can be exercised only at the time of expiration.

* An excerpt from investopedia.

Stealth I think your mistaken a quote from saxobank website "Saxo Bank offers Over the Counter (OTC) plain vanilla European style Forex options......"


Where did you see they offer American Style?
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