Originally Posted by
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thanks.
I see that ISE are EUROPEAN STYLE options only....why not american? I mean with american possibilities, when prices are in my favor, I could just excercise my holdings....but european only restricts me to this single day....what would be the advantage of this??
Most alternative traders do not exercise because they are speculating or hedging. If you exercise you take possesion of, or are brief, the underlying. I think the only way to maintain a common currency was supposed to quote together with the USD as the base currency. By settling in cash (USD), the exchange doesn't need to take possesion of various world currencies. Alternative traders I know rather prefer European style options.
Btw, once I stated sell, it had been misleading. I didn't suggest writing options, but liquidiating options I was holding. Is this better than excercising?
Yeah, I presumed that otherwise I would have gone on a rant on why you shouldn't trade naked options.
Approximately a lot of the currency options are excercised compared to holdings being liquidated? We know that in american style inventory options are rarely excercised.
I have no way of understanding this but do not be scared to ask the ISE or even PHLX. You'd be surprised how prepared they are to assist you to learn their products. If you forced me to guess I would say the huge majority are never exercised. The only time I have ever exercised options was on or very near expiration when I wanted to save a few bucks on commissions and I had an offsetting alternative position that would render me flat.
Is there a way to use the ISE's platform. . .like a trial or simulation? What is the minimum deposit to open up an account.
Good question and , I do not know the answer. The ISE is an alternative exchange, not a trading platform.
Additionally, you stated multiply by several hundred. So ignroing time, along with other factors, lets say USD/EUR is 0.8000 then basically 1 contract's value would be 80.00? Also, including expiration and commission and such fees what would it come out to be.
Yes, 0.8 x 100 = 80. Commissions are up to a broker. $ 1 per contract costs. There are no fees.
ISE could eventually be my answer. . .no more becoming stopped out...
I don't know about that and might encourage you to investigate this. These options do not supply the leverage upon which you have been accustomed to enjoying. If you are getting stopped out a lot you need to examine that. Stay and fight for what is yours.