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Very interesting... I'll have to look into this method. I've just come across a very cool options analysis program that I think will be very helpful with this.. Thanks.

Thinking a little further, I can see now that OTM options have no intrinsic value, only time value, and time value inevitably goes away... ie, it's impossible to make money on an OTM option unless it goes ITM, which is not what I was looking at. All in all, it seems clear that options are...

Based on the numbers I've run so far, the profits from pair trading while consistent are fairly small. When buying equities outright, the brokers I've looked at charge per transaction, regardless of the number of shares. Scottrade, for example, charges $7 per trade. If I trade one share, I...

My idea would involve giving the option a chance to increase in value, then selling out of it long before expiration. If I didn't let it get too close to expiry, I wouldn't need to worry about it expiring worthless, or hopefully running into liquidity issues. All part of my noob thought...

total_keops had recommended to me to look into spread betting, and he was just pointing out that it's not the same as spread trading. I'll see what the futures may bring (:)) but I'm not sure my broker is on the futures bandwagon. BTW, I am in a free country (US) ;)

My primary reason for looking at options was as a way to create a form of leverage. As a noob with limited capital I would find it rather hard to overcome transaction costs when pair trading equities outright, and I'm not sure I'm ready (or qualified) to convert my cash account into a margin...

Your points are well-taken, but it seems to me from looking at the charts that if one uses well OTM options, the time decay is greatly reduced, and the lower delta could be made up by buying more contracts. Brian-

I'm curious if anyone is using options to execute a pairs trading (statistical arbitrage) strategy. I'm looking into pairs trading and it seems that the effective leverage available with options would be a great way to overcome the cost of transactions, especially since most brokers punish...

I've been looking at IG for their options and binaries. Anybody got comments on those?

I've been playing around with this platform for a week or two and I've been astonished at what seem like very high premiums. It's very difficult to construct any trades that will be profitable, and I'm wondering if anyone has historical data on these options? Are these high premiums a...

I might look at futures options in the future (!) but for now I'm looking for options that I can exercise into spot positions should I so choose. In addition to CFOSFX I've also located TradeView Options and they both use the Core Options platform. For the time being I'll build my plans...

I know about Saxo Bank and CFOS and of course Oanda has their cheesy 'Box Options', but I'd like to hear from others about any further choices in brokers. So far the retail FX brokers I've contacted have been no help.

Thanks! I'll check them out. Any others?

I'm looking to get an account with an online brokerage to trade some stocks, but I'd like to find one that will let me open an account with a small initial balance, say $500 or less. Any suggestions? Thx

That may be true, but the site you mentioned (forexsignallive) does not provide a free trial. They charge $65 for a 14 day trial. It is an interesting model, though.. to use MT4 as a channel for distributing signals automatically. It gives the basic functionality of a managed account...

The prevalent concern is that it will stop working because so many people are using it. It is rumored that one broker at least has already raised their spreads during the time that FAPTurbo trades in order to thwart the traders. Considering how difficult it would be for a retail broker to...

I was responding to the remark that it would be foolish to let a 'robot' trade for you. Obviously one needs to start with a profitable system to get good results, but the notion that a computer cannot make money for you has been disproven over and over again.

Looks like our friend may have taken a day job!

Some of the most successful traders in history have used purely mechanical systems. Such a system would be perfect for use in an EA, in fact it would be better to let a computer run the system for you than to try to do it yourself, as computers run the system without flaw 24/7 and are not...

I understood the OP as wanting to trade directly with the liquidity providers (banks, etc.) rather than having to go through the middleman (retail broker, dealer, bucket shop, whatever you want to call them). If you're only wanting to trade for yourself and not take client's money, then you...