Option Expiry

Discussion in 'Forex Trading' started by bpcnabe, Mar 26, 2009.

  1. bpcnabe

    bpcnabe

    Question:

    How does option expiry affect prices of the underlying crosses? i.e. expiry of 6950,7000,7010 strikes on the AUS/USD tomorrow

    Does price gravitate toward those numbers going into expiration like a magnet? Does this indicate in a trending market that the pair will stay around these prices throughtout the day?

    Appreciate any insight. Thanks