Hedging spot with options - Which Broker? | Forex Factory

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Hedging spot with options - Which Broker?

  • #1
  • First Post: Oct 2, 2014 10:15am Oct 2, 2014 10:15am
Hello guys,

I would like to ask if there is a broker that provides short term vanilla options.
I give you an example of my thought.
Letīs say that Iīm gonna short EURUSD at 1.3450. I dont want to risk more then 10 pips on this trade. So, my question is if there exist a possibilty of buying call option with strike price 1.3450 that would actually be in the money when the spot price is 10 pips higher at 1.3460. So, during the life of the option, my risk would be limited to 10 pips. I also need the expiration of the option to be like 30 minutes or 1 hour. Not days or weeks.

Thank you.
  • #2
  • Oct 2, 2014 4:36pm Oct 2, 2014 4:36pm
Quoting Eq1988
Hello guys, I would like to ask if there is a broker that provides short term vanilla options. I give you an example of my thought. Letīs say that Iīm gonna short EURUSD at 1.3450. I dont want to risk more then 10 pips on this trade. So, my question is if there exist a possibilty of buying call option with strike price 1.3450 that would actually be in the money when the spot price is 10 pips higher at 1.3460. So, during the life of the option, my risk would be limited to 10 pips. I also need the expiration of the option to be like 30 minutes or...
Expect to pay a high premium for that.. Don't waste your money .. trade it yourself
  • #3
  • Last Post: Oct 2, 2014 11:45pm Oct 2, 2014 11:45pm
Quoting lasty
{quote} Expect to pay a high premium for that.. Don't waste your money .. trade it yourself
Hello lasty,
premium is fine if I trade big enough position. Itīs not necessary to limit losses to 0, but to limit them. There must be a way. I read an article that this is how HFT traders hedge their position in equities. They buy SP500 index and hedge it with put option on SPY ETF. There must be something like this in fx too.

Thank you for your answer.
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