Forex Options Strangle System

Oh, I get it, you have to go with the real-time quoting for expiries that are coming up soon; I have noticed that. I didn't know the part about , as I haven't had the demo that long; good to know.
So if I've bought or sold into a position, I can trade out of it, no matter how crazy far price has gone away from the strike, and only pay the spread, as long as I do it more than 24 hours before expiry?
Also good to know that about worse fill. What does that phrase mean? "Worse Fill"? Seems a little Engrish to me.

Yes & No.

Yes if it's still in the auto-execution range (ie. quoted in the table) & not the expiry week. Remember they all revert to request for quote in the expiry week.

When you get a dealer quote it takes a lot longer than in the demo. Someone manually goes away and gets you a quote. You can be waiting for several minutes, the price can move a lot in that time if a big move is underway. If there is some kind of big panic maybe they wont quote you at all or the quote will be ridiculous, who knows? Like I said, I try to avoid the manual quotes as much as possible. I'm selling options about a month from expiry with the view to letting them expire worthless, but sometimes I close them out early for a bit of certainty. I wouldn't risk selling close to the strike price in the last week, it is a recipe for disaster.

Worse fill, the number of pips movement in premium you are prepared to have your order filled at from the quoted price. My suggestion is tick the box and leave it at zero - no surprises that way.

I'm still confused. I wish Ikon had a reference for this stuff. Are you saying that any trade I'm in that was made through a custom quote (some weird strike that is not on the table), can't be exited manually? It can only expire on its own? Only trades picked from the table that have plenty of time left on them can be closed early?
Or are you saying, just don't select any options from that table with strikes near the current price when it is near the 17th of the month, because I might get locked into them while they go against me?

I'm not saying do or don't do anything. Your trading decisions are entirely yours. Personally I try to stay away from dealer intervention as much as possible because the quotes aren't as good and there is a delay between requesting a quote and receiving one.

Normally anything that appears in the table, if you click the buy or sell buttons at the bottom of the screen then that is the price you get.

At certain times the Buy & Sell buttons are no longer functional and the Request for Quote button is no longer greyed out. In this situation, when you click on any of these three buttons a different window appears and a physical human being (ie. dealer) manually goes away and gets you a price. It can take several minutes for the dealer to respond & the price will very rarely be as good as the auto execution price.

Currently 3 pairs never go on auto-execution. NZDUSD, GBPJPY, XAG(ONC). For all other pairs, in their week of expiry they go off auto-execution (they go to request for quote only).

On the day of expiry you cannot exit trades at all, either auto-execution or with dealer intervention.

I've been trading for the last 40 days options with them. Quantum platform its available in uk ( I do not know in aus or us), so you can trade spot and options without changing platforms.

I had many problems, based specially on functionality and execution. The calendars quote that they are offering are not big enough, so if you are looking for a delta 15, you have to get a RFQ, . I got so many rejected order because the platform sucks, or the dealer is too busy. The problems comes when you want to close before expiration.

I tried to close a eurus APril and in the platform said that the price was 10 to buy it back and when I got the dealer price he offer me 25. He said that was a fair price, .. this is not a fair price.
I complained about it, and looks like they are going to refund the difference.
Also "dealer 25" is rude and grumpy. He use to be the dealer uk sesion. I'm scared to request a quote, looks like I'm in the SSSS (means Gestapo list).

I try always to get options from calendars, but most of the time it's practically impossible. With my strategy is useless to trade delta 25 or 30, so I have to request a quote.


Anyway, the platform need some big improvement, the options calendar need more strikes, trading spot its complicate because platform do not work properly and you get errors without any reason all the time. Place a stoploss can be a nightmare.

Good things,.. 10 pip spread, no commision, (saxo 10$ <50k)

I took a look at the Quantum demo it seems to be practically identical to the old software. The only difference being you have one piece of software open and select between tabs rather than having 2 programs running. I haven't had any problems placing orders or stop losses, but the range of strikes on auto execution is exactly the same (limited).

I just try to close an option and again., worst price than platform.
I opened this trade GBPUS 1.52 with a spread 53/63 (AUT) exactly the same as platform. Now I went to close and I was expecting to close on aut mode, but they send me to RFQ with 3 pips worst than platform spread.

I have to deal again with dealer 25, he call me buddy, and remind me that I can't not waste his time with 10k contract questions or complaints.
something is wrong here. Its not normal that 100% of the options that I bought back, I paid more than price platform.

Maybe it's the contract sizes? My trades are substantially bigger. I only go RFQ under the situations I mentioned above. Maybe they really do have you on "the list". I have only had a chat to a dealer once, in the beginning, when the whole platform showed a spread of 15 pips instead of 10.

My Ikon FX Prime platform demo only has 100,000 options. Where are 10k?

Type it in, same as if you want to go larger than 1,000,000. Under 100,000 you get an additional charge though.

Type into a drop-down menu... what a concept. Looks like I can type in any amount I want? Doesn't have to be increments of 10 or 100 thousand?

I am testing out the Ikon Quantum platform and have a few questions.. maybe someone could help?

I have 2 positions that have expired (today 16:00) but they are still open.. when do they close? If i sell a OTM call/put and it's later on ITM and i maybe have a loss of 50$, if it also expires at that level will the loss be the same or will it be greater just because it expired ITM?

Do you think Short Strangle is better than naked selling? I just feel that even though i could get two "wins" i could also get one loss that is bigger than my other profit. If it moves to much in one direction i might have to close the put or call.

How do you trade around news/statistic releases? It can move the market pretty much?

Rumor has it that both FXDD and AVA offer or are about to offer same-account, cross-margined FX spot and options. Also, check out NZ-based WSD and FX Central.

[quote=relaxtrading;4367750]I've been trading for the last 40 days options with them. Quantum platform its available in uk ( I do not know in aus or us),

But is it available for real account?
When I asked live chat they gave me the link but said they don;t know when it will available for real money?

With all the hassles of OTC FX options
- Real money accounts not available
- Counter party risk
- Jurisdiction might be dodgy etc

Why not consider ISE FX options on FX futures?
- Transparency
- Liquidity
- Brokers regulated / covered under SIPC
- Counter-party risk taken care of
- Better Options oriented platforms ( OE for example)

The only reason I see to use OTC for FX options is Leverage for Covered calls.
For 100K SPOT on Saxo etc you only need 1000
For 100K Futures on US Exchanges you need probably 10 K ( can somebody confirm what leverage you get in Futures?)

Please add if this is not true

I am referring to Exchange traded Options on FX
Namely EUR/ USD

If prices for CALL and PUT are different for same Strike price and same expiry is the following possible


the yield from CALL is more than Yield of PUT

A) DO a CC on
Long EUR/USD and
Sell -1 EUI Feb11 73.5 Call $0.71 ($71.00)

B) Protect the downside ( SPOT going downwards)
Buy 1 EUI Feb11 73.5 Put $0.60$60.00

Net yield = $11 per contract?
How is this possible?

Which brokers have ISE FX options on FX futures then?

Any reputable Options broker sicne these are exchange traded products

In US: Options Exprese, TOS , IB and many more

Could you go over that again please? It a little crpytic...
whats EUI mean? and 73.5 Call, what is 73.5?
Which broker did you use for this example? Thank you!

These are Exchange traded Options on FX pairs , EUI is the code for EURO/USd pair
http://www.ise.com/WebForm/viewPage....tegoryId=510#1
Also check http://www.fxoptions.com/Site/Default.aspx

73.5 is the Strike of the option

Options Express is the broker