Shall I move from stock option to FX options?

M

mizhael

Hi all,

I have a model which forecasts volatilities. I tried some paper trading using index option straddles.
The result was bad because of the wide bid-ask spreads.

Shall I move to FX options? Currently I have no idea about FX options. Do FX options give a smaller bid-ask spreads than stock/index options?

Another question:

Suppose I have modelled the volatility and correlation of the prices of the assets jointly,... and based on the model, I have a forecast of tomorrow's volatility and correlation of two assets.

What trading strategies shall I use to trade volatilities and correlations in FX and FX options market?

Thanks
 
Fx Option is the way to go,

Steve


Quote from mizhael:

Hi all,

I have a model which forecasts volatilities. I tried some paper trading using index option straddles.
The result was bad because of the wide bid-ask spreads.

Shall I move to FX options? Currently I have no idea about FX options. Do FX options give a smaller bid-ask spreads than stock/index options?

Another question:

Suppose I have modelled the volatility and correlation of the prices of the assets jointly,... and based on the model, I have a forecast of tomorrow's volatility and correlation of two assets.

What trading strategies shall I use to trade volatilities and correlations in FX and FX options market?

Thanks
More...
 
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