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Any reason not to trade 6E over EURUSD?
- Thread starter davewolfs
- Start date
Quote from Veyron 16.4:
Yes - ONE currency pair. Not two. Not three. No "arb." No triangles. No fluff. Just pure mathematics doing what pure mathematics likes to do.
snipped
For those that actually read my first post, recall, I started out as derivatives trader - learning equity option strategies inside and out. So, when I got to the currency markets three years later, my brain was already wired for creative trade structuring. In the currency spot market, you don't have the same creative tool set to work with to physically structure trades the same way you can in the equity derivatives market. So, you will have to learn how to use Mathematics to formulate "creative" ideas for non-direction trades.
Having a degree in Mathematics also helps - but is not necessary.
Gotcha, no triangles. You profess to know what you're talking about, but don't understand the underlying process which allows dealers to make FX markets? Triangular arbitrage makes OTC dealing possible. Here's where you will chime in that you understand "triangles".
This isn't giving away anything proprietary and/or derivative... what is the delta of a European ATM put or call at a zero risk-free rate, zero carry?
no that was not the point. The point was that you claimed binaries to trade at 600bps spreads which is utter none sense. None of the professional market maker would ever quote you a 600 bp spread otherwise it would be the last time they talked to clients.
You are such a bluff.
You are such a bluff.
Quote from atticus:
The point was that binaries have no place in triangular arbitrage as a price-taker, not whether it's an active market, you fool. The OTC FX barrier markets are much larger than Worldwide listed equity vol, probably by a factor of five.
I trade touch-markets and it's routine for me to hedge/replicate lookbacks with touches, as well as trading Euro-range and DNTs/touches outright. I trade >$1MM in payouts in touch markets on a weekly basis. Have you ever actually traded this market?
The EURUSD one week 1.4200 binary was 47/53 yesterday afternoon via UBS with spot pinned [pick-'em] That's a 600-bp market. Don't believe it? Call UBS or DB for a quote. The anyoption.com idiocy is pricing the risk-reversal at 20-wide.
Quote from asiaprop:
no that was not the point. The point was that you claimed binaries to trade at 600bps spreads which is utter none sense. None of the professional market maker would ever quote you a 600 bp spread otherwise it would be the last time they talked to clients.
You are such a bluff.
Call my bluff and prove me wrong on Monday.
lol, you are a f*cling lame.
thats all you can produce in your defense? Well, I am not suprised, what a deja vu on the Buffett thread. If you ever worked in a professional sell-side environment I would love to know what firm you worked for. I would take you apart on a daily basis and rip your ass so wide open you would beg to have the pain stopped.
Quote from atticus:
Call my bluff and prove me wrong on Monday.
lol, you are a f*cling lame.
Quote from atticus:
I've heard worse, thanks. The point was that that Veyron was talking out of his ass when comparing his Fibonacci BS to triangular arbitrage. "Elitist Trader" asked him about TA:
Quote from Elitist Trader:
Sounds like the holy grail....
So are you trading tri-arb?
Pretty darn close. Nope, I'm using a proprietary Fibonacci derivative that wraps multiple positions around the same pair - yes, only one pair!
The argument concerned adding binary options to a triangular-arbitrage. It's not something that can be done on the buy-side. Sell-side/price-makers can convert option-flow into triangular-arbitrage, but it's not the first or even second consideration. It's possible for the dealer, but highly improbable.
The discussion centered on Sakhter mentioning the possibility of Veyron utilizing binary ops in his trading... and triangular arb was added (not by me). Way off-topic. As it stands, Veyron is trading Fibonacci garbage at zero risk!
Taleb has a basic primer on binaries/exotics in Dynamic Hedging. Stick to the definitions and equivalence:
http://www.amazon.com/Dynamic-Hedging-Managing-Vanilla-Options/dp/0471152803
The suicide-link was meant to convey that adding binaries was suicide. I have nothing against you personally.
Sorry for the misinterpretation and thank you for the link. I'll check it out. The extent of my knowledge of derivatives is based on the book "Traders Guns and Money"... we all have to start somewhere.
Quote from asiaprop:
thats all you can produce in your defense? Well, I am not suprised, what a deja vu on the Buffett thread. If you ever worked in a professional sell-side environment I would love to know what firm you worked for. I would take you apart on a daily basis and rip your ass so wide open you would beg to have the pain stopped.
Rip my ass apart? Literally and figuratively you'd be dead/debit in 5 seconds.
I am years in FX, but I am new in this area.
Can anyone tell me what is 6E?
(I am reading thfis thread from page 1)
Can anyone tell me what is 6E?
(I am reading thfis thread from page 1)
Quote from davewolfs:
Sorry for the misinterpretation and thank you for the link. I'll check it out. The extent of my knowledge of derivatives is based on the book "Traders Guns and Money"... we all have to start somewhere.
No worries. There wasn't any point in linking a source when the topic was being misused in this thread. I've not read "Dynamic Hedging" but I believe Taleb covers equivalence/synthetics as well.