Interest rate exotic options

zf trader · Dec 1, 2009

I'm looking to trade exotic options on the Bund. Can anyone suggest a good broker?

Martinghoul · Dec 1, 2009

What sorts of exotic options on the bund are you going to trade, pray tell?

zf trader · Dec 1, 2009

Since I have so much fun buying straddles on eurex I thought I would find lots of opportunities in taking long vol positions through exotics.

I would like to buy both a one touch call and put at 3am eastern on days after the bund failed to make "rent" or "sigma" for two day in a row

Martinghoul · Dec 2, 2009

Quote from zf trader:

Since I have so much fun buying straddles on eurex I thought I would find lots of opportunities in taking long vol positions through exotics.

I would like to buy both a one touch call and put at 3am eastern on days after the bund failed to make "rent" or "sigma" for two day in a row

You can't do exotic options on the bund. Period. Bund isn't the wonderful world of FX.

thegazelle · Dec 2, 2009

There's a price for everthing, especially in a trader's mind.

Martinghoul · Dec 2, 2009

Quote from thegazelle:

There's a price for everthing, especially in a trader's mind.

Fine... Why don't you make me a mkt in a vanilla Mar10 124 call? Then we can proceed further...

zf trader · Dec 2, 2009

An recommendations for an FX exotics broker? I have been looking at betonmarkets.com and the spread between the one touch/no touch price is huge.

PlusMinus · Dec 3, 2009

Quote from zf trader:

An recommendations for an FX exotics broker? I have been looking at betonmarkets.com and the spread between the one touch/no touch price is huge.

Nadex.com ??

thegazelle · Dec 3, 2009

Quote from Martinghoul:

Fine... Why don't you make me a mkt in a vanilla Mar10 124 call? Then we can proceed further...

Um, thanks but no thanks. I know what its like to work in illiquid markets I trade power.

PlusMinus · Dec 3, 2009

Quote from thegazelle:

Um, thanks but no thanks. I know what its like to work in illiquid markets I trade power.

So you only trade liquid markets but you're asking where to trade exotic options? As far as I know nadex is the only regulated exchange venue in the US for exotics (not counting CBOE's binaries). Everything else is OTC. Just how liquid will that be when markets become volatile?