Maverick74: CME Euro FX Options - European Style N/A Pit-Traded and GLOBEX agggg globex is europian style
I want to hedge a long position by buying a put eg , go long eur / usd 1.2220, and then buy put 1.2200 If i can not find an american style option, how am I suppose to exersise this ?? because if i wake up with eur trading 1.0000 atleast I have bought put @1.2200. loss will be the premium payed. but I have to be able to exersise it. If it is europian , I will losse more ! any takers ?
I already have the long position. I understand what you are saying. let us assume that I am long... there is no way out of it
You can sell the option anytime you want. Also in your example, you were long a synthetic call. So if the Euro went down to 1.00, your call would be worthless. I'm not sure what you are trying to do here. Maybe take a breather and do some more reading on options and just sit this out for awhile. The market is not going anywhere.
so then , if i am not able to exersise it when it is in the money, then how am i suppose to hedge the loosing long position ? reselling the option will not be as effective as exersising it remember, I went long @ 1.2220 I bought put @ 1.2200 next day it goes to 1.0000 loss of 2220 on long gain 2200 on bought put after the offset...net loss of .0020 only if i xersise it
Oh my. We have a special one here. I'll try to be put this simply. There is nothing to hedge! Your position is worthless. You bought a call that is now worth nothing. Good job!