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FX Options trading
- Thread starter Jarro
- Start date
FX options tend to be very expensive due to the wide spreads at most brokers, which means the option price has to make a considerable move to give you a profit. Therefore I would not recommend using options unless you are very experienced. The fact is that most options expire worthless and therefore in general I would avoid buying options
Quote from BKcurrency:
FX options tend to be very expensive due to the wide spreads at most brokers, which means the option price has to make a considerable move to give you a profit. Therefore I would not recommend using options unless you are very experienced. The fact is that most options expire worthless and therefore in general I would avoid buying options
BKCurrency, I agree with you that FXoptions tend to have a very wide spread therefore they are very expensive. But I disagree with your second statement that all options expire worthless: Options lose at expiration only their time value not all their value.
To the first poster: check out ifsclusa.com.
Quote from gkishot:
BKCurrency, I agree with you that FXoptions tend to have a very wide spread therefore they are very expensive. But I disagree with your second statement that all options expire worthless: Options lose at expiration only their time value not all their value.
To the first poster: check out ifsclusa.com.
GKISHOT,
I said MOST options expire worthless, NOT ALL.
That is a fact.
Quote from gkishot:
I am not aware of any such fact. You are probably referring to the far out of the money options. Most of them might expire wortless but even they can be profitable.
GKISHOT,
I am referring to most options, that means most of all options.
If you do some research you will find out that most options do in fact expire worthless. Everybody who have been trading/investing options knows that.
Quote from BKcurrency:
GKISHOT,
I am referring to most options, that means most of all options.
If you do some research you will find out that most options do in fact expire worthless. Everybody who have been trading/investing options knows that.
everyone who have been trading/investing options knows that even though most expire worthless the few that don't end up costing you a lot.
it would be better to look at the P/L from buying a several options a month or two out and see where they are at expiry.