currency Options

Discussion in 'Options' started by toby400, Sep 20, 2003.

  1. toby400


    Anyone trading these?

    Are they safer for a newbie to trade rather than using Forex Futures or the likes of FXCM etc?

  2. It is safer to buy options than to trade futures, because you know with absolute certainty that you will not lose more than what you paid for the option, but I'm afraid the probability that a newbie can be profitable buying options is even slimmer than trading futures.
  3. toby400


    Thanks for a prompt reply Lobster. I will pass on options I think.
  4. Mvic


    for years while also trading the underlying futures. They can be very useful and if you are thinking about trading currencies you owe it to yourself to get educated about options in general and see how they may augment your trading of the underlying, be it futures or forex. GL.
  5. Any pointers to good books, sites, etc.? Thanks! :)
  6. Anyone would recommend the following books (that I found from

    The Eurodollar Futures and Options Handbook
    by Galen Burghardt (Hardcover - June 2003)

    Foreign Currency Trading: From the Fundamentals to the Fine Points
    by Russell F., Sr. Wasendorf, et al (Hardcover)

    Trading Currency Cross Rates : Proven Trading Strategies from a Leading International Currency Trader and a Noted Expert on Futures and Options
    by Gary Klopfenstein (Author), Jon Stein (Author) (Hardcover - July 1993)

    Options on Foreign Exchange
    by David F. DeRosa (Author) (Hardcover - January 2000)

    Currency Derivatives : Pricing Theory, Exotic Options, and Hedging Applications
    by David F. DeRosa (Editor) (Hardcover - September 1998)

    Mastering Foreign Exchange and Currency Options: A Practitioner's Guide to the Mechanics of the Markets
    by Francesca Taylor

    Trading in Currency Options
    by William Sutton

    Managing Currency Risk Using Foreign Exchange Options
    by Alan Hicks (Hardcover)

    Managing Currency Risk: Using Financial Derivatives
    by John J. Stephens (Author) (Hardcover)

    Fixed Income Analysis for the Global Financial Market: Money Market, Foreign Exchange, Securities, and Derivatives
    by Giorgio S. Questa (Author) (Hardcover)

    Managing Risk in the Foreign Exchange, Money and Derivative Markets
    by Heinz Riehl (Hardcover)

    Currency Options and Exchange Rate Economics
    by Zhaohui Chen (Editor) (Hardcover - April 1998)

    Noise Trading, Central Bank Interventions, and the Informational Content of Foreign Currency Options (Kieler Studien, 313)
    by Christian Pierdzioch, C. Pierdioch (Hardcover - January 2002)

    Handbook of Currency and Interest Rate Risk Management
    by Robert Schwartz, Clifford Smith (Contributor)

    Pricing Foreign Exchange Options: Incorporating Purchasing Power Parity
    by Michael Towcheung, et al (Paperback - July 1998)

    Mastering Foreign Exchange & Currency Options: A Practical Guide to the New Marketplace (Market Editions (Financial Times/Prentice Hall).)
    by Francesca Taylor (Hardcover - May 2003)

    Global Finance: A Market Approach: Foreign Exchange, Spot, Forward, Futures, and Options
    by Joseph M. Monahan (Hardcover - January 1996)

    Foundations of Foreign Exchange Option Symmetry
    by Valery A. Kholodnyi, John F. Price (Hardcover - June 1996)

    Currency and Interest Rate Hedging
    by Torben Juul Anderson

    Exchange Rate Regimes for Emerging Markets: Reviving the Intermediate Option
    by John Williamson (Paperback - October 2000)

    Foreign Exchange Option Symmetry
    by Valery A. Kholodnyi, John F. Price (Hardcover - July 1998)

    Currency Options (Currency Risk Management Series)
    by Brian Coyle, Alastair Graham

    An Introduction to Foreign Exchange & Money Markets
    by UK London Reuters Limited (Author) (Hardcover - February 1999)

    Eurodollar Futures and Options: Controlling Money Market Risk (Institutional Investor Publication)
    by Morton Lane (Contributor), et al

    Currency and Interest Rate Hedging: A User's Guide to Options, Futures, Swaps, & Forward Contracts
    by Torben Juul Andersen, Torben Juul Anderson
  7. BTW,

    Eurodollar Futures & Options are interest rate products.


  8. msfe


    Eurodollar futures & options have nothing to do with currency/FX trading ...

    Eurodollars are time deposits denominated in U.S. dollars that are deposited in commercial banks outside the United States, and they have long served as a benchmark interest rate for corporate funding. The Eurodollar futures contract, developed and introduced by CME in 1981, represents an interest rate on a three-month deposit of $1 million. The Eurodollar futures contract is now the most actively traded futures contract in the world. Open interest in the contract recently surpassed four million.

    contract details at
  9. Thanks for the info/pointers. :)
  10. #10     Oct 2, 2003