Globex just don't have the options I need. The leverage may not be the right word. If you trade the spot and the price moves 5 pips, you make 5 pips profit. With binari option the price may move 5 pips, but you can make 20 pips profit. Of course ...

How FX options can affect spot price heading in to expiration

Do you ask me something or just try to argue? Options are complex and you can learn them only if you trade them. As risk manager I had the chance to trade with on of the biggest bank. They don't trade daily options, but you can choose from KI ...

How FX options can affect spot price heading in to expiration

I shared my experience because I'm a trader and everything should be practical. It's not OK just to know that the options affect the spot market. You have to know what you can do if there is a large option expiry. Otherwise your knowledge is ...

How FX options can affect spot price heading in to expiration

chucklots, options are complex and it is normal to discuss this topic. I doubt that if you and I share experience will do harm to anyone.

How FX options can affect spot price heading in to expiration

Of course volatility is not the only factor affecting the options prces. If I want to trade the price I use spot positions and the leverage that binary options provide. With plain vanillas and binaries I trade predictable changes in volatility as ...

How FX options can affect spot price heading in to expiration

Options pricing depends on volatility. Small range means lower volatility and cheap options. Don't remember the time decay. I don't want to promote brokers, but I can tell you that there are at least 2 decent ones.

How FX options can affect spot price heading in to expiration

The purpose of the analysis is not to catch 5-10 pips move. You can trade any set up, but if the price moves only 5-10 pips with spot position you'll end up with small profit or BE. If you trade the same set up with binary option you can make 30 or ...

Strategies to manage lower Market Volatility and PA

For the news trading I have to other strategies. Pure volatility trading. I'm not interested in the price.

How FX options can affect spot price heading in to expiration

Daily plain vanillas expiry at 8PM London time. They are usually very cheap if the market spent the time before NY cut in 30-40 pips range. The average daily range for EUR/USD is 70-80 pips recently. This is simple math.

How FX options can affect spot price heading in to expiration

I mean exactly long strangle. Volatility goes down before the option expiration at NY cut, because the pair trades in a tight range. I expect increase in volatility after the large option expires.

How FX options can affect spot price heading in to expiration

The only cure for the low volatility I have found are the options. They provide you with a leverage that overcomes the negative effects of the smaller price moves. For example 5-6 pips move gives you 1:3 or better R/R ratio. You trade the same set ...

Strategies to manage lower Market Volatility and PA

Another binary call for GBP/USD. Strike 1.6034, expiry 8:58AM London time, price 38.61. The option was bougth 8:43AM. STE on 1minute chart. EURUSD STE just above 20 EMA. Stop at BE.

Following the big money

GBP lagged behind the EUR a little and I bought binary call. The payout was 100, which means 65.12 pts. profit. Now I'm looking for long entry on the spot.

Following the big money

Seven years ago news trading was with 80% winning trades. Average profit was 20 pips, average loss was 5 pips. The orders were placed 40 seconds before the release in both direction. To trade event with just 2 outcomes with one order is pure ...

Central Banks & Big Players

I have my stats and that is why I don't trade the news releases for 7 years. It's now gambling.

Central Banks & Big Players

Sometimes I need a little luck. The option expiried in-the-money and the price dropped immediately. They payout was 100.

Following the big money

I was trading spot but the volatility decreased in the recent months and I turned to options. Binaries especially are providing the leverage needed to overcome the low volatily. Also it was about time to use all the experience I have with options. ...

Following the big money

I never rely 100% on what I read about the options expiries ot large orders. The best tools for confirmation are the quote reading and the price action analysis. Ticks can reveal the size of the orders that are executed. If they confirm that someone ...

How FX options can affect spot price heading in to expiration

The options market is getting bigger and larger option now is probably 200-250+ mio. I see that volatility of the spot is going down and the price is staying closer to the strike around options expiries.

How FX options can affect spot price heading in to expiration

The info about the options is not 100% reliable because the FX is OTC market. I use MNI for years and think that they are OK regarding the orders and options expiries. When I was FX delaer I used Reuters and their FX Buzz service is also not bad. DJ ...

How FX options can affect spot price heading in to expiration