Hi all we're new to IB and it's approach to FX. Our GUESS is that the atlantic peso ( GBP) is going to move around a bit over the next few months and want to put on some kind of STRADDLE surrounding a specific price. We do options on futures all the time so we have some idea how TWS or Mosaic works but FX no clue. We've bought and sold GBP.USD and that's easy but it's a 50/50 bet. We'd like to use some of our options knowledge to increase our probability of success.
You would need to do options trading on currency futures like the user above said. Some forex broker may offer CFDs for trading.
thank you for the reply. we looked at that but couldn't see how to effectively do it. Have you ever traded options on currency futures and what was your opinion of it's utility?
@theakson , on TWS, go to Trading Tools --> Strategy Builder. Then enter 'GBP' in the little field circled below and pick the futures month you want to see. Then you will see the options chains as highlighted below and can choose a straddle. The arrows show the straddle prices for the 1.355 Jan '21 GBP contract.
Thanks @ffs1001 OUTSTANDING!!! just what I was looking for. I think I asked the wrong question originally by concentrating on the pairs. Thanks again.
@theakson, you asked the right question originally! I understood what you wanted. Anyway, you'll probably ask me now if I've traded option on currency futures and what my opinion is - yes I have. My opinion? It's like all trading - options simply give you....er...sorry...more options on how to structure a trade. The basis of a successful trade is dependent on which way you think the underlying (in this case GBP) is moving - if you think it will rise, then you can trade it in multiple ways - buy a straight future, buy a call option, buy a call spread, sell a put credit spread etc etc.... The key thing being (1) getting the direction right and then (2) having the right trade in place to make the most profit from it.