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OptionsXpress has FX options!

  • #1
  • First Post: Oct 11, 2007 9:16pm Oct 11, 2007 9:16pm
I had no idea a retail broker did FX options in lot sizes that a regular person could afford (10,000 units for all but yen, which is 1,000,000 units)! No delivery or assignment to worry about (dollar settled)!

Has anyone used OptionsXpress for FX options, how is it?

http://www.optionsxpress.com/promos/...lx&src=300x250
  • #2
  • Oct 12, 2007 2:03am Oct 12, 2007 2:03am
and i also see that they have a "Cash (No minimum deposit required)" account type. Maybe i'll open a mini account with them.

Anyone have some experience with them?
"Abandon all hope, you who enter here" La Divina Commedia, Dante Alighieri
  • #3
  • Oct 12, 2007 6:59am Oct 12, 2007 6:59am
Quoting GoatT
I had no idea a retail broker did FX options in lot sizes that a regular person could afford (10,000 units for all but yen, which is 1,000,000 units)! No delivery or assignment to worry about (dollar settled)!

Has anyone used OptionsXpress for FX options, how is it?

http://www.optionsxpress.com/promos/...lx&src=300x250
TradeStation offers them as well. I have traded a few of the ISE options and they are an interesting product. They are offered by the ISE and PHLX so make sure you know which product you are trading. The ISE has a large number of saved webinars that can get you up to speed quickly.

The one thing that won't appeal to many is that you lose most of the leverage that you enjoy in the spot market. An ATM option on a $100K (10 contracts) option might be $1800 and you get a delta of 50 whereas on the spot market you could trade the same contract with $1000 and risk up to 180 pips before realizing a total loss not to mention that you would be starting off with a delta of 100.

The real beauty of this will be a couple years from now when more brokers start offering universal accounts (IB does this now). Then you will be able to adjust your options with spot positions in the same account.

Despite that, I think trading options are great way to let your long term opinions play out in a regulated environment.
  • #4
  • Edited 7:06am Oct 12, 2007 7:06am | Edited 7:06am
Quoting philmcgrew
TradeStation offers them as well. I have traded a few of the ISE options and they are an interesting product. They are offered by the ISE and PHLX so make sure you know which product you are trading. The ISE has a large number of saved webinars that can get you up to speed quickly.

The one thing that won't appeal to many is that you lose most of the leverage that you enjoy in the spot market. An ATM option on a $100K (10 contracts) option might be $1800 and you get a delta of 50 whereas on the spot market you could trade the same contract with $1000 and risk up to 180 pips before realizing a total loss not to mention that you would be starting off with a delta of 100.

The real beauty of this will be a couple years from now when more brokers start offering universal accounts (IB does this now). Then you will be able to adjust your options with spot positions in the same account.

Despite that, I think trading options are great way to let your long term opinions play out in a regulated environment.

Exactly! When options on the FX become more of a universal product it's going to open up an entire new realm with FX trading...can't wait!
  • #5
  • Oct 13, 2007 6:52am Oct 13, 2007 6:52am
Thats good to know. I didn't know you could get options for 10k contracts either any other way than spread betting companies. That's very good to know, as I would like to short GBP/USD medium term using an option at some point, probably next year. What the the biggest time period they offer?
  • #6
  • Oct 13, 2007 7:01am Oct 13, 2007 7:01am
Quoting peterM
What the the biggest time period they offer?
Currently you can go out to SEP 08. The ISE offers the 3 front months and then quarterly thereafter on the MAR/JUN/SEP/DEC cycle.
  • #7
  • Oct 13, 2007 7:06am Oct 13, 2007 7:06am
Great, that is really good to know.
  • #8
  • Oct 13, 2007 7:24am Oct 13, 2007 7:24am
Quoting Palmer
Exactly! When options on the FX become more of a universal product it's going to open up an entire new realm with FX trading...can't wait!
10 years ago FX options used to be traded more on exchanges than they are now. Unfortunatly, nowadays the participants that matter (institutions & banks) trade the bulk of the volume OTC. For them it means cheaper transaction costs and more flexibility, for retail traders it means this market is not really accessible, and there isnt anything that hints that this is going to change anytime soon. 'fraid you are stuck to whats left at the exchanges or suck up to whatever retail bookies like saxo offers.
  • #9
  • Oct 13, 2007 7:47am Oct 13, 2007 7:47am
Quoting shrike
'fraid you are stuck to whats left at the exchanges
Stuck? With what? Hundreds of thousands of regulated, centrally cleared, and guaranteed exchange traded options are traded every day by the largest names in the trading world all the while using a pricing formula known to even the beginning trader. How is that stuck?
  • #10
  • Oct 13, 2007 8:14am Oct 13, 2007 8:14am
Compared to tradeing options OTC on platforms like volbroker, you are stuck with it. Not saying you cant have success with exchange traded options, but in comparison to OTC you are at a disadvantage in terms of liquidity, fees, available maturites, etc.etc.
  • #11
  • Oct 13, 2007 8:23am Oct 13, 2007 8:23am
Quoting shrike
Compared to tradeing options OTC on platforms like volbroker, you are stuck with it. Not saying you cant have success with exchange traded options, but in comparison to OTC you are at a disadvantage in terms of liquidity, fees, available maturites, etc.etc.
Why don't you tell everyone here how they can trade through volbroker and what the requirements are to sign up.
  • #12
  • Oct 13, 2007 8:34am Oct 13, 2007 8:34am
I doubt they want to deal with individuals, thats why i said "stuck". You can get access through banks, but not without atleast a 7 figure deposit.

I just wanted to point out that the FX options markets are a bit different to i.e. stocks, futures or even FX Spot, where it is easy to participate for retail traders with favourable conditions.
  • #13
  • Oct 13, 2007 8:41am Oct 13, 2007 8:41am
Quoting shrike
I just wanted to point out that the FX options markets are a bit different to i.e. stocks, futures or even FX Spot, where it is easy to participate for retail traders with favourable conditions.
The new fx options offered on the ISE and PHLX do treat the underlying as a stock. You trade them directly from a stock/options account. You can even buy the Euro as a stock just as you can gold as a stock. It's not any different than any other stock based derrivitive. Since my personal account is under the $10 million mark I am quite happy to participate in the world's largest regulated options market.
  • #14
  • Oct 14, 2007 3:00am Oct 14, 2007 3:00am
ya i believe we talked about this sometime ago..

dude 10m ???
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  • #15
  • Last Post: Dec 27, 2007 12:43pm Dec 27, 2007 12:43pm
The ISE just announced penny increment quotes on their FX Options. Good stuff!
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