DislikedI'm in the U.S. I'm seeing that most ETFs trade in increments of 100 shares. That requires you to have at least a $10,000 account. ETFs seem so much better than OTC options (learningmarkets has some videos on this). I would think that everyone with enough money would go the ETF route, and the OTC would be picking up the small accounts. I guess they're competing for the same market though, as places like Saxo have a high minimum deposit, leaving us sub-10,000 guys with just spot trading and no way to hedge effectively.Ignored
1) Limited trading hours lead to gaps.
2) Margin isn't as good as options on the spot market
3) Strikes are forced to be every $1, or 100 pip equivalents.
4) Liquidity isn't as good as in the spot market. Today the the FXE has traded just over 4100 options or 410,000 shares worth. That is nothing compared to the tens of millions in EURUSD options traded today since the FX Options market is a $200B a day market.
However on the plus side:
1) Regulated market centralized market.
2) Better spreads.