EUR/USD is heading down after the Yellen and Draghi comments, but the FX options are sending warning signals to the bears. Market is long options via OT, RKO and vanillas to 1.3000. This positioning caps the vols despite the break lower. 1M is 5.2, while 3 is 5.4. Risk reversals are also hit and 1-month 25 delta RR is just 0.3 EUR puts. Market is longer gamma around 1.3150.
All this information suggests that bears may see some headwinds going south. Keeping in mind that the specs are holding a large short position, a correction higher on consolidation before the next leg down could be expected.
how much margin do you need for these commodity and oil trades. never traded them b4. i've been doing stock options and forex for 4 years
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If you trade commodities via futures, the margin is usually high (http://www.tradestation.com/products...n-requirements). Fortunately, you can trade commodities via CFD or spreadbetting account with lower margins.
Hello. My broker provide 2 pips spread at EURUSD. It means if I use 5 pips stop loss, that my really stop loss is 3 pips. Maybe it's too small and I need to use 5 pips + spread?
Hello. My broker provide 2 pips spread at EURUSD. It means if I use 5 pips stop loss, that my really stop loss is 3 pips. Maybe it's too small and I need to use 5 pips + spread?
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You can easily find a broker with 1 pip spread. I always buy on support and sell on resistance. My initial stop is 2-3 pips (for 1 minute chart) beyond the high/low reached during the test of the resistance/support level.
Scottish referendum is tomorrow and it is interesting to see what options markets are telling about it. GBP/USD o/n IV jumped to 18, while the o/n IV for EUR/GBP is 15. 1W is around 16 for both pairs. 1M GBP/USD IV is 9.75. 1M 25 delta risk/reversal is 3.6 for GBP/USD and 3 for EUR/GBP in favor of GBP puts. This is 6 year high and probably is because of hedging.
Positioning of GBP options shows that most of the strike expiring after the referendum are around 1.64-67 for GBP/USD and 0.7950-7750 for EUR/GBP. This means that the options traders are positioned for NO vote.
{quote} If you trade commodities via futures, the margin is usually high (http://www.tradestation.com/products...n-requirements). Fortunately, you can trade commodities via CFD or spreadbetting account with lower margins.
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And what are the differences apart from margin requirements?I trade CFD's on Hotforex, but they don't offer exchange-traded futures currently and it begs the question: is it makes a sense to move on futures trading to get more advantages or I can stay with CFD's, making the same profit with lowered margin?
