Non-desk dealer that offer currency options? - Page 2
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Thread: Non-desk dealer that offer currency options?

  1. #11
    OTC means within the counter, as in not traded on a regulated exchange like the CME, but traded in a personal agreement between 2 counterparties. Because its not traded on a market, there's absolutely no need for special contract specifiion, so it is considerably more flexible. I.E. you can have anything expirations, quantities and strikes, and exotic constructions like digital or binary choices. Owing to that, there's also not necessarily a liquid secondary market for these choices.

    About the CME you can trade options on stocks (i.e. choices on the EuroFX contract). You can look look up their specs on their site. You should be able to trade them through MB (not sure actually, I only trade the odd index choice to procure a longterm future position). Sorry about the CBoE-information, apparently they dont offer FX options (but they're still recorded on the MB site as option-exchange).

    Can you provide me a link to the CME otc item? I couldnt find anything on their site.

  2. #12
    Man this stinks. I can't just go with saxo or IKON....

    I might have to ditch currency in general, start scalping commodities:/


    on CME site, if u look carefully they will provide american style FX options, globex is no longer encouraged, but they have 3rd party front-ends that allows u to trade....however, I dont know that the minimium deposit, and other prices as well.

    If u find anything else I want to know....where else could I trade options OTC? Customized expiration, attack, this is all too great. Since I won't be needing expiry date of no longer than 3 days, I expect that the premium is reduced.

  3. #13
    My questions boils down to this.CME has currency options. However, MBT doesn't support it. How do I Trade it actually being in the trade pits. Is OTC currency options secure? Like Saxobank and so forth. What is options on a currency futures and difference from options on SPOT currency. If I am able to trade currency options, can it be viable to trade options with expirations less than 3 days. What would the premium be.

  4. #14
    It's possible to trade legitimate options http://www.ise.com/WebForm/options_p...truelink1=truebut if you do not know what you're doing I'd bother. Options are a sophistied tool with several dynamics and you're trading against somebody who understands how they work.

  5. #15
    Quote Originally Posted by ;
    You can trade legitimate options http://www.ise.com/WebForm/options_p...truelink1=truebut if you do not understand what you're doing I would bother. Options are a instrument with many dynamics and you're trading.
    thanks. Have u traded with them? Is there a simulation where I can try the trade platform.

    how are these currency options priced? I understand for like inventory options they are 100*attack, with time and volatility factor.

    Is ISE offering OTC alternatives or options on futures like the CME?

    Is it possible to sell currency alternatives like stock selections for profit. Might it be feasible?

  6. #16
    Quote Originally Posted by ;
    thanks. Have traded ? Is there a simulation where I can test the trade platform.

    how are these currency options priced? I understand for like stock options they are 100*attack, with volatility and time variable including.

    Is currently ISE offering OTC options or options on stocks such as the CME?

    Can it be feasible to market currency options like stock selections for profit. Might it be feasible?
    ISE.com has several webinars and videos in their options. Thsee are stock options and the currency transactions just as if it were a stock quote in order that they are calculated the same way all options are priced. Not the funny business your fx broker offers you. These are not OTC, they are exchange controlled and cleared via the OCH (options clearing house) which ensures all stock options traded in america. They're priced and quoted the same as stock options therefore you do have to multiply by 100 to find the price of a contract.

    Could you market them? Yes, they are for many functions, stock options. You can exercise and be delegated. They're cash settled.

    Perhaps you have traded them? Yes, I currently hold a few places.

  7. #17
    Quote Originally Posted by ;
    ISE.com has many webinars and videos on their alternatives. Thsee are stock options and the currency trades just as if it had been a stock quote so they are calculated the exact same way all options are priced. Perhaps not the funny business your fx broker offers you. These are not OTC, they're exchange regulated and cleared through the OCH (options clearing house) that guarantees all inventory options traded in america. They're priced and quoted the same as stock options therefore you do have to multiply by 100 to get the price of a contract.

    Could you market them? Yes, they're for many purposes, stock options. You can exercise and be assigned. They're cash settled.

    Perhaps you have exchanged them? Yes, I currently have a few positions.
    thanks.

    I find ISE are EUROPEAN STYLE alternatives only....why not american? I mean with american possibilities, when prices are in my favor, I will just excercise my holdings....but european only limits me to this day....what are the benefit of this??

    Btw, once I stated market, it had been misleading. I didn't mean writing options, but liquidiating options I was holding. Is this greater than excercising?

    Approximately much of the currency options are excercised as opposed to holdings being liquidated? We know that in american fashion inventory options are rarely excercised.

    Is there a way to utilize the ISE's platform. . .like a free trial or simulation? What's the minimum deposit to open up an account.

    Additionally, you stated multiply by a hundred. So ignroing time, and other aspects, lets say USD/EUR is 0.8000 then essentially 1 contract's value would be 80.00? Also, including expiration and commission and such fees what would it appear to be.

    ISE could eventually be my answer. . .no more becoming stopped out...

  8. #18
    Quote Originally Posted by ;
    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.
    .

  9. #19
    Quote Originally Posted by ;
    .
    Thanks for such detailed answer. I have contacted ISE about some of the stuff about min deposit and such.

    I understand, nevertheless if those currency options are traded such as the stocks, with similar leverage, then I would be pretty happy. I know stock options ATM generally costs at least few to simply a few hundred dollars, and the returns on these are very handsome when effective. Why not currency options? Since we multiply by 100 like teh stock, should not we except similar leverage at a more affordable premium?

    Again, options, or some other derivative for this matter would not be so straightforward. But limited risk and unlimited profit is whats so appealing about these options contracts.

    philmcgrew, what were your experiences like? Are you currently having success trading currency options? If ur not busy, could I contact you through email or instant messaging.

    Thank you again!

  10. #20
    I'm just as happy talking to you here. Maybe someone else would benefit as well. I exchanged options full time before moving to forex and adored them. I've waited for a long time for the marriage of forex and options. The 1 point I'm trying to make is that an option contract controls the equivelant of a mini-lot, maybe not a normal lot. Yes, you can buy an OTM choice for $80 but that provides you a mini-lot. Options do provide you leverage but to start, you have to give up the spot leverage that you now enjoy.

    On the spot market I will set a 50 pip stoploss and buy a GBPUSD contract using $500 risk. To control the identical sum of money with options I would have to buy 10 contracts at somewhere about $100 each and still only get a delta of 50 whereas the spot includes a delta of 100.

    As far as my experience, they are relatively new but they are the same as stock options. The USDCAD and USDJPY charts are just like they would be for the spot. The EURUSD and GBPUSD are inverted so that USD includes first.

    I do not think ISE can tell you what a minimum deposit will be. As I stated before, ISE is an options exchange, they ease trading just like the NYSE, NYMEX, CME or some other exchange. To exchange options you have to start an account with a broker.

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