any recommondations? I need a FX Option Trading Platform. Before this, I practised in Saxo, FXDD. In FXDD, I can trade FX spot and FX option in one platform. And also, I can place limit and stop order. But, I only can trade with CALL or PUT. Although it is a powerful trading platform, but, when I want to place composed orders such as IRON CONDOR or BUTTERFLY, I need construct my postion by one leg plus one leg plus............it is owful when market is high volatile. In additional, has anyone used TDAmeritrade? I mean, the option risk analysis tool in ThinkorSwim is pretty good. In constract, the risk controlling analysis tool in FXDD is quite simple. What I need is just that: spot and FX option in one single platform,and I can place my multi-leg option onder in one click. If this platform has a more complicated Option Risk Analysis tool, then it should be perferct. any recommodations? Thanks!
I would not be surprised if Interactive Brokers had this functionality. Are you trading options on currency futures, or options on spot fx?
There will not be many because options on OTC forex cannot be offered at retail in the U.S. They are not allowed. So you would have to go to institutional options platforms.
Easy solution for ya. Trade the options on the FX ETFs. And you can enter all the combo spread orders you like.
yes but you are most likely the only poor buyer getting slaughtered by market makers. Liquidity is virtually non-existent in those options.
There is plenty of liquidity there. They get arbed against other options. If you bid or offer near fair value you will get filled in a second. Besides, the Saxo platform's options are insanely wide. Even on EUR/USD. Trust me, the ETF options are pretty tight and very liquid. I've seen 10k and 20k lot trades go off at mid.
that last comment got me curious. Care to share which ETF sponsor you look at for the currency etfs you talk about? Because I cannot say I saw the same...
By sponsor you mean the holder? I'm referring to the "currency shares" ETF's i.e. FXY, FXB, FCX, FXE, etc. For example, look at the FXY, the Yen out in Jan 2014, a pretty illiquid month. The Jan 80 and 90 strikes which probably have a big spread trade on, have open interest of 14k and 23k respectively. You'll see these big trades go off all the time. But regardless of the big trades, the MM's are willing to trade size in any one of these markets. They can lay of the risk very easily. It's not like a stock where there can be a deep liquidity vacuum.
fair points, though this approach lends itself only to longer term bets, basically leveraged investment. Nothing can be done in Asian or core European trading hours.