Why forex options liquidity is so low

Discussion in 'Options' started by saar, Jun 22, 2015.

  1. saar

    saar

    while forex is the world's largest market ?

    Thank you in advance
     
  2. Depends on which pars, time of day and which broker .
     
  3. Yes. Fx ops liquidity is very good for major pairs during appropriate hours. Maybe OP can offer counterexamples from his own experience. o_O
     
  4. liquidity on all options is very low, not just forex.
    why? because nobody trades it.
    why? who knows... probably you can't make any money with it.

    just my point of view.
     
    lawrence-lugar likes this.
  5. Say what?... Near-the-money SPY options, for instance, are a penny wide.
     
    lawrence-lugar likes this.
  6. mmt

    mmt

    The FX options market is very liquid. But most of the volume is OTC. The FX options volume is low on exchanges.
     
  7. You can trade on-exchange at middleish prices, because it's an easy arb vs OTC for the mms. Give it a try -- throw in some limit orders. Or try FXE, FXY, etc. ops.
     
  8. saar

    saar

  9. mmt

    mmt

    forex options are traded otc. (however, there is a bit of liquidity on the CME). there is no liquidity on any other US exchange.
     
  10. saar

    saar

    Which OTC platform offers american (not european) vanilla forex options with wide and distant expiration dates ?
     
    #10     Jun 23, 2015