Day Trading & Forex Forum

juanchoc

Hi!
Is it posible for a retail trader to trade exotic options? And if so, what broker is offering those products?
Im quite interested in trading exotics, but i cant find much information on how to do so.

Any info will be much appreciated.

Thanks in advance,
JCC

GammaJammer

Any idea what sort of exotics you want to trade? If you look at BetOnMarkets.com (formerly xodds) you may find something of interest. But you will likely run into three main problems imho;

1) Understanding the risks and price factors in trading exotics (depending on how you trade of course).

2) Valuing the options correctly.

3) You will face high spreads as a retail trader, so transaction costs will eat you alive.

GJ

__________________
"That which doesn't kill me makes me stronger"

juanchoc

Thanks for your answer GammaJammer!
I've been watching the betonmarkets website, looks interesting.
Still i think im going to stay with plain vanilla options for the time being. As you said, its not really worth the trouble (or may i say the transaction costs).
I just was intrigued about it.

Thanks again,
JCC