Question re: Option Barriers | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

Option barriers 12 replies

Mental Barriers 21 replies

Getting Past Blocks / Barriers 4 replies

Oanda - Option Preferences Question 0 replies

Option barriers? 3 replies

Question re: Option Barriers

  • #1
  • First Post: Mar 26, 2013 10:38am Mar 26, 2013 10:38am
I hear a lot of chatter about "option barriers" at a give level in the market. While I understand what that term refers to I don't understand where the level comes from. Is there a service or a web sight that posts where the "barriers" are?
  • #2
  • Mar 26, 2013 12:14pm Mar 26, 2013 12:14pm
Quoting gspajon
I hear a lot of chatter about "option barriers" at a give level in the market. While I understand what that term refers to I don't understand where the level comes from. Is there a service or a web sight that posts where the "barriers" are?
IFR and Forexlive will give you levels
What is any ocean but a multitude of drops?
  • #3
  • Mar 26, 2013 12:35pm Mar 26, 2013 12:35pm
Quoting Xhale
IFR and Forexlive will give you levels
I am familiar with ForexLive, but not with IFR. Would you happen to know where these numbers come from? ForexLive talke about "rumers" of option barriers, but there is nothing substantial. Are they just "gossip" on the news wires, read: speculation as to why price won't move further in a given direction?

Can you advise what is IFR?

Thank you for your response.
  • #4
  • Mar 26, 2013 8:34pm Mar 26, 2013 8:34pm
FX option barriers (and most FX option contract types, for that matter) are private deals between two counterparties. They're not exchange-traded i.e. there will be no central clearing house where contract details can be derived.

You will hear rumors flying about of supposed barrier levels being defended or attacked, but that's the most you will hear.
I'm not trying to convince anyone. I'm not in the "convincing" business.
  • #5
  • Mar 26, 2013 9:18pm Mar 26, 2013 9:18pm
Quoting gspajon
I am familiar with ForexLive, but not with IFR. Would you happen to know where these numbers come from? ForexLive talke about "rumers" of option barriers, but there is nothing substantial. Are they just "gossip" on the news wires, read: speculation as to why price won't move further in a given direction?

Can you advise what is IFR?

Thank you for your response.
IFR is a Thompson Reuters product I believe. Free if you your broker is Oanda.
  • #6
  • Mar 26, 2013 10:34pm Mar 26, 2013 10:34pm
This site gives option volumes, its free and I think quite interesting.

http://trading-evolution.com/forum/portal.php
  • #7
  • Last Post: Mar 26, 2013 10:38pm Mar 26, 2013 10:38pm
Quoting skenobi
FX option barriers (and most FX option contract types, for that matter) are private deals between two counterparties. They're not exchange-traded i.e. there will be no central clearing house where contract details can be derived.

You will hear rumors flying about of supposed barrier levels being defended or attacked, but that's the most you will hear.
Thank you skenobi. This is what I thought. I haven't traded options in FX at all but always thought that the option barrier was just speculation. While I'm sure that certain levels are defended rigorously for obvious reasons, there is no definitive way of knowing that is what is happening. And I always hear these rumors come up when there is a ranging market that no one can really explain why...The level usually isn't of any technical significance but prices seem to hold each time a rally or dip happens. Since no one really knows, why people begin to suppose its an option barrier being defended or attacked.

Thanks again.
0 traders viewing now