Hedging spot with options - Which Broker?
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Thread: Hedging spot with options - Which Broker?

  1. #1
    Hello men,

    I'd like to ask if there is a broker that provides short term vanilla options.
    I give you an example of my thought.
    Let´s say that I´m gonna short EURUSD in 1.3450. I dont want to risk greater 10 pips within this particular trade. So, my question is if there exist a possibilty of buying call option with strike price 1.3450 that could really be in the cash once the spot price is 10 pips higher at 1.3460. During this option's life span, my risk would be limited to 10 pips. I require the expiration of this option to be just like 1 hour or 30 minutes. Not days or weeks.

    Thank you.

  2. #2
    Quote Originally Posted by ;
    quote Expect to pay a high premium for that. . Don't waste your cash. . Exchange it yourself
    Hello ,
    premium is fine when I exchange large enough position. It´s not essential 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 stocks. They buy SP500 index and hedge it with put option on SPY ETF. There must be some thing such as this in fx too.

    Thank you for your answer.

  3. #3
    Quote Originally Posted by ;
    Hello guys, I want to ask whether there is a broker that offers short term vanilla choices. I give you an instance of my idea. Let´s say that I´m gonna short EURUSD at 1.3450. I dont want to risk more then 10 pips on this trade. My question is if there exist a possibilty of buying call option with strike price 1.3450 that could really be in the cash once the spot price is 10 pips greater at 1.3460. So, throughout the life of this choice, my risk would be limited to 10 pips. I also need the expiration of the choice to be like 30 minutes or...
    Expect to pay a high premium for that. . Do not waste your cash. . Exchange it yourself

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