4 quick question about currency options.
- Thread starter jjk2
- Start date
PLEASE do not trade options unless you have at least 1yr SPOT and 1yr FUTURES experience.
I was actually about to mention this myself. The FOP's (Futures Options) I've been making reference to have a notional value of 100k-125k currency units. The PHLX options trade on forex mini-lots, or 10k.
I have no experience trading them, however, and could definitely not endorse them from a personal standpoint. It's a really new product, so I doubt that you're going to see a lot of liquidity in the early-going.
forget all currency options...why?...no volume on ANY of the currency option products...you will get hit with huge spreads and no liquidity...no volume on any currency options...stick with the emini SP...
Back in the late 80's and early 90's I was the $/Yen options specialist on the PHLX it was a good product then. Even the IMM/CME product was a big volume player then, but they were both killed by the efficiency of the OTC market for the bigger players. I am not a PHLX member anymore and have not traded those products in over 10 years but I know the guys who run the books on the PHLX and they're going after the smaller players who want the cash settled product and whose brokers/clearing firms dont want the hassle of dealing in currency settlements.
Fimat
options on futures....do tehy offer more leverage compared to your regular stock options? since futures offer more leverage than options....confused 
also, i hear about this volatility arbitrage, where u basically do a straddle on one of the usdgbp options, and some ppl make a nice profit doing this consistently.
also, i hear about this volatility arbitrage, where u basically do a straddle on one of the usdgbp options, and some ppl make a nice profit doing this consistently.