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Hi Guys, I need a FX Option Trading Platform

  1. 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!
     
  2. I would not be surprised if Interactive Brokers had this functionality.

    Are you trading options on currency futures, or options on spot fx?
     
  3. IB only offers listed FX futures options no OTC options.

     
  4. 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.
     
  5. Easy solution for ya. Trade the options on the FX ETFs. And you can enter all the combo spread orders you like.
     
  6. yes but you are most likely the only poor buyer getting slaughtered by market makers. Liquidity is virtually non-existent in those options.

     
  7. 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.
     
  8. 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...

     
  9. 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.
     
  10. 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.

     
  11. Well, the guy didn't give me his resume so I don't know who he is, when he is trading, what his trading style is, etc. I was simply answering a very basic question, yes you can trade currency options and they are pretty liquid. If he wants to fill in some more details, I can expand on his options (no pun intended). FWIW you can trade options on futures around the clock 24/7.
     
  12. I think you should try 24options as they have many tools and ways of trading according to nature and need of different types of traders.
     
  13. You are genius man, everybody is talking about Options and you put binary on it! Shame on you!
     
  14. Are there benefits of that over just trading the PHLX or ISE currency options, or is it just six of one half dozen of the other? I actually prefer the cash settled of the currency options, but that of course only impacts you if you plan to hold to expiration.
     
  15. Thanks for updating friends.
     
  16. OTC FX options means you are playing against the provider, Why would you do that? when there are options on FX futures on Regulated exchanges! and in any case although there are lots of OTC FX spot products, very few provide options on FX spot! so you are even further disadvantaged!
     
  17. There are numerous reasons to pick OTC vs exchange listed. First of all, if you are trying to pick specific event dates, dealers would provide you with custom expirations. Also, there is a wide variety of exotic options that you can trade in OTC.

    If we are talking about proper OTC options (via an ISDA), the fact that you are trading against a dealer is not that big of a deal. First of all, you would quote multiple dealers on the way in and, at the unwind time, probably first quote your provider and if his level does not look good, you could novate to other dealers.

    What do you mean?
     
  18. Please educate us, could you please provide few names of retail OTC FX options "providers" and where they are regulated?
    I only know Saxo and perhaps cantor ( retail level)
    Also when you say "you are trading against a dealer is not that big of a deal... how?
    If I have an OTC option struck with 1 provider way in, how can I Novate to other dealer?
    Again I am talking about Retail
    Forget using diff "providers" way in and way out within it's own platform with saxo they wont cross margin a spot and Option on it! Where as with an Exchange traded underlying Futures + Option on that futures you can get margin relief and do things like covered all writing or married put
     
  19. Oh, did not realize - there used to be a fair number of guys here who had access to proper OTC via their aggregators such as prop-firms. In your case I'd imagine your best bet is to stick to futures options and options on FX ETFs.

    Indeed. You also get much better price discovery, at the cost of losing flexibility.
     
  20. using horse racing terms...trading against a bookmaker or in a true exchange.. I know what I would prefer! Market risk is one thing, happy to take that but the silly broker and counter party risk!that is another risk one does not need to bother, unless it is odd ball exposure that you want to hedge! for example for AUD/USD why would I bother with OTC when I can see exchange traded products but for AUD/ Mex may be one will have to go the OTC route.... oh by the way somebody mentioned the scumbag Binary Options in this space! LOL