I am trading forex cash now and only hold position up to a day or 2 . But would like to try options for longer term trading.Is options a long learning curve . Eur is at $1.1350 now . I think it will be at $1.0500 by Oct if not before . How do i trade that with options ?
You buy a put option which gives you the right to sell the underlying at a specified price. I would recommend you trade the 6E Futures Options available at the CME for it's liquidity. It's has a rather large underlying contract. $200,000 to $250,000 is my guess. You do have a learning curve ahead of you. You must also assess the cheapness or dearness of the option relative to your volatility forecast.
why would you want to trade fx options to begin with? You have plenty leverage available almost free of charge, why paying time value for something you can get virtually free of charge? Also "now" you trade options? Sounds like you failed in everything else before and this is gonna be your final desperation try. Stop feeding the sharks with your preciously earned money, instead get education first!!!
@volpunter is blunt but making a good point. To use options on an already highly leveraged product, you will most likely get your head handed to you.
"I think it will be at $1.0500 by Oct if not before ." Any reason for that opinion ? I rather like the idea that if/when Greece leaves the Euro, we could see some strength.... $1.20 - $1.30 by October perhaps...?
Mr negativity , i have been trading forex cash for 12 years and average for the last 3 years is 223 pips per month profit .i have a ton of cash only making 4% in my cd now . I am just asking questions . Looking for longer term investments were i dont need to tie up as much capital .
I call you out as a blatant liar. Nobody who has traded currencies for 12 years knows nothing whatsoever about options, not even the most ignorant moron. Call me anything you want but what you are claiming is outright bullshit. You can ask questions but you are making up lies and as this is a public forum you gotta deal with others being suspicious of your bogus claims. But you can feel free to put me on ignore, I have a zero tolerance for arrogant newbies.
buy a "sell option"? Haha, you are the fuckwit of the day on this site, official nomination. It is called an out of the money put option.
I have never traded an option stock or future in 12 years .Always FX cash market So excuse me if i dont know the terminology . Sorry i asked the original question . Pretty angry people here . WOW