yeah... my Uncle has equity share in a small servicing firm out of NYC.. played golf with him all day today.. he is in town for some construction risk convention.. alot of my family is in this business.. I said to him today.. well if perceived risk is going up in nyc then premiums can rise.. and in tern you are happy.. he smiled.. let me ask you this.. why are people so interested in the exotics instead of vanillas? seems to me more like a way that firms can take OTC products or customized/taylored products and make markets in them themselves to retail customers.. exploiting the non fungibility of them. your playing the house in essense.. unless you have some way to exploit model error it seems like a tough game..
Right. I'll amend it to say - Unless you have your own pricing model or a separate source that tells you exactly what the price should be, do not trade any financial instrument unless you can get quotes for both buying and selling so that you can see the spread.
For example now at anyoption the Eur monthly barrier is at 1.284 spot 1.2710 and the Yen monthly barrier is at 80.00 spot 79.49 .
Out of curiosity, has anyone tried the API on NADEX? The really short dated binaries and call spreads do sound interesting if you have an ability to execute automatically - though getting a meaningful size through would be hard.
Any thoughts on the Saxo quotes? They are from last Sunday, spot 1.2717. I know that they are not available in the US and I am not looking at fx atm, but maybe I should?
http://learning.saxobank.com/forex/options/notouch-double.aspx The lack of fungibility is where the interest lies. You can easily replicate a European digital with a vanilla vertical, but not so with touches.
double no touch... thats some food for thought... sat here and thought about it for a while... i came up with this paper.. i read through the introduction... http://eprints.maths.ox.ac.uk/784/1/nihao_dissertation_project.pdf