Gotcha, no triangles. You profess to know what you're talking about, but don't understand the underlying process which allows dealers to make FX markets? Triangular arbitrage makes OTC dealing possible. Here's where you will chime in that you understand "triangles". This isn't giving away anything proprietary and/or derivative... what is the delta of a European ATM put or call at a zero risk-free rate, zero carry?
no that was not the point. The point was that you claimed binaries to trade at 600bps spreads which is utter none sense. None of the professional market maker would ever quote you a 600 bp spread otherwise it would be the last time they talked to clients. You are such a bluff.
thats all you can produce in your defense? Well, I am not suprised, what a deja vu on the Buffett thread. If you ever worked in a professional sell-side environment I would love to know what firm you worked for. I would take you apart on a daily basis and rip your ass so wide open you would beg to have the pain stopped.
Sorry for the misinterpretation and thank you for the link. I'll check it out. The extent of my knowledge of derivatives is based on the book "Traders Guns and Money"... we all have to start somewhere.
I am years in FX, but I am new in this area. Can anyone tell me what is 6E? (I am reading thfis thread from page 1)
No worries. There wasn't any point in linking a source when the topic was being misused in this thread. I've not read "Dynamic Hedging" but I believe Taleb covers equivalence/synthetics as well.