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Hi, I want to know if there is any limitation on submitting an option spread order to close an existing position and also to submit a separate spread order to open a new position on the same spread at the same time. For example, closing long XYZ vertical call spread 30/40 (which is a position...

I think that anyone who wants to start managing OPM for living should overcome a very frustrating period, since probably no one would give him money to manage without at least a proven track record and even if there is such a track record -- there may be many other reasons why not to give money...

Of course, but I want to check also a few other brokers before I go to IB, so I can make some comparisons regarding commissions and other parameters. If you know about any other brokers that offer Eurex options trading please let me know, thanks

Thanks!

There is a long list. Could you please refer me specifically to the ones that enable Eurex equity option trading? Thanks

If I transfer USD to EUR through IB account, do I actually make a FX spot transaction and therefore I am fully exposed to IB's credit risk (and I assume this is not insured under the FDIC deposit insurance)?

Thanks for the clarification. Are Spot FX actually "one day" forward contracts that are based on buying the other currency on a 1:100 leverage and being exposed to any change in conversion rate? If so, I don't see it as a hedge but rather as a speculation... Also, the other side of the trade...

I agree. Options as a Strategic Investment is a very informative book; it is not easy to read, but there are many practical advises that I found useful. Also, I would recommend Natenberg's Option Volatility & Pricing. It's more theoretical than McMillan's Options as a Strategic Investment and...

Thanks for the explanation. In your previous response you made a distinction between FX forwards (through dealers) and Spot FX. Are both of them forward contracts and how do they differ from each other?

Any suggestions?

Thanks, very helpful. So if the 2-year is at .3430 the price of a 10 points 2-year box spread should be 9.9657?

Thanks for the response. Could you please elaborate on spot FX? I am not so familiar with FX instrument, I apologize in advance. You mentioned the effect or interest rates and I wonder if there is any hedging instrument that will enable me to transfer a currency which its interest rates...

Do you mean actually selling my USD and buying CHF in cash instead? If so, the problem is that I want to trades equity options with other currencies than CHF. So even if the CHF is stronger than the USD as a currency, I prefer to have my USD as the basis currency and when I want to trade...

I see a quote of 3-months LIBOR/OIS spread (which is about 15.65 regarding USD), and I didn't see any quote for a longer period. Does that mean that a box spread which is 10 points appart that expires within 2 years should be traded at about 9.98, so that the 3-months LIBOR/OIS is being applied...

Can you give me a link to a reliable website that publish such long term rates (whether it is LIBOR swaps adjusted by LIBOR/Fedfund spread as you stated or anything else, I just want to see a ceratin number :) thanks

OK, now it is clearer, thanks. But the OIS sounds as a good benchmark regarding short term options, but what about an option that is expired within 2 years? or 3 years? Does also in these cases the rate which should be applied is the FF OIS (which relates to very short durations) even regarding...

Can you be more specific? I am trying only to make a pure hedge, and using leverage may introduce additional and unwanted risk, isn't it?

an do you think that in addition to create the strategy as you suggested, making an additional hedge (for example with buying OTM options as a hedge with 15% of the portfolio) is not effective since you would create a "double hedging" which is not necessary and will reduce the returns substantially?

If you can elaborate on this matter it will be great (and also explain what is excatly FF OIS), thanks.

Hi to all. I have a question regarding forex hedging: If I want to effectively hedge an amount that is to be converted from USD to EUR, so that I just want to "fix" the current EUR/USD conversion rate in a way that will enable me to convert the amount back to USD within one year at the same rate...