Forex Options!

[jasonshurnas]

does anyone know how these work?
of course we can use options on futures and just about everything else, but can we trade forex options?

is there anyone on the forum that knows about Forex Options?

[snorm]

Hi Jason

If you're interested in Options, I would recommend reading "Options Volatility & Pricing - Advanced Trading Strategies and Techniques" by Sheldon Natenberg. It's not Forex-focussed (nor is it light-reading), but provides some great information.

Trading Forex Options is perfectly feasible but is it any better than Spot Forex? Each to their own, I guess. Options trading, in my opinion and from little experience, is like betting on the horses (with a strong tip, if you do the homework), compared to 'regular trading', where you can nurse the trade from start to finish.

cheers
Steve

[Den]

Hi Jason,

I was a successful options trader and made heaps of money BUT that was in the late 90's nasdaq bull market. Like Steve, I have all the books and software which can be like rocket science but I simplified it and had a good robust system. I havent traded Forex Options as such but did trade currency options on the stock market. I have looked at higher time frames with AIMs and often thought about buying an option as they are very lucrative plus you know your risk and cannot lose any more than the cost of the option. I used to close the trade at 50% if it went the wrong way. I had a ratio of 10% move in stock equates to 100% move on option. Im talking basic puts and calls not naked/exotic etc. I am also dabbling in Binary Options. I dont know why, I think Im curious. AIMS is fine, actually the simplist way of trading imho but the markets are awesome and I love seeing how others have found their edge.

http://learning.saxobank.com/forex/options/default.aspx" onclick="window.open(this.href);return false;

http://uk.saxomarkets.com/lp/fx-options-demo" onclick="window.open(this.href);return false;

http://en.wikipedia.org/wiki/Foreign-exchange_option" onclick="window.open(this.href);return false;


http://www.forexfactory.com/showthread.php?t=173735" onclick="window.open(this.href);return false;

Heres some links but I also have tons of PDF"S on options trading Im happy to share .

Hope this helps a bit but at least you know you are not alone in your thinking

Den