Shall I move from stock option to FX options?

Discussion in 'Forex Trading' started by mizhael, Mar 5, 2008.

  1. Hi all,

    I have a model which forecasts volatilities. I tried some paper trading using index option straddles.
    The result was bad because of the wide bid-ask spreads.

    Shall I move to FX options? Currently I have no idea about FX options. Do FX options give a smaller bid-ask spreads than stock/index options?

    Another question:

    Suppose I have modelled the volatility and correlation of the prices of the assets jointly,... and based on the model, I have a forecast of tomorrow's volatility and correlation of two assets.

    What trading strategies shall I use to trade volatilities and correlations in FX and FX options market?

  2. Fx Option is the way to go,


  3. Could you please elaborate a bit more?

  4. achilles28


    Can I ask who you trade FX options with?