contracts with little vol

Discussion in 'Options' started by cashmoney69, Nov 4, 2008.

  1. I trade forex mainly, but I thought about opening a small 2k account with thinkorswim and trade the forex etf's like FXB, and FXE...and maybe spy options here and there.

    my question: should low volume contracts be avoided at all costs or is there an edge?
  2. dmo


    There's no edge for a retail trader in low-volume contracts. You're on the wrong side of the wide bid-ask spreads. Stick with the liquid stuff with tight bid-ask spreads.
  3. If you are looking for something else besides spot forex than maybe look at the forex futures which are pretty liquid with tight b/a spreads (all depending on the currency of course). I do not think the options on low volume fx etfs will give you much joy
  4. Good point optioncrotch. As usual you are on the ball. :)
  5. whats a reasonable amt of volume for options? i know qqqq and spy get a lot but besides those two, and are index options. I guess ndx is good too?