vanillaman
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FX Vanilla Options are not very popular in the retail space despite accounting for a lot of the trades that take place in the interbank by banks.
If you don't know what it is here is some information I looked very hard for a broker that did these as I know the spot market of traded must be done via derivatives due to broker manipulation in the spot market, I tried TD Ameritrade and Options house both in the US and they would not service European clients, so couldn't do I located a Cypriot broker through a friend that offered them in the UK and had FCA cover. They had been around since 2003 so good enough for me. I have used them for coming on 3 years and they are perfect and they offer real Vanilla Options.
In banking most of our products are bespoke so regulation, etc is just a song and dance. So seeing the large spot FX market eating away hard earned coin from traders isn't surprising at all in the absence or inaccessibility of derivatives. I am 100% positive it is impossible to make consistent gains in the FX market without a derivative hedge or outright derivative trade. Many will claim it is possible but it is not in reality, you would be better of buying the asset non-leveraged and holding for a few years. You have a better chance of making money.
The advantage in being an Options trader is I never have to have a stop loss. The broker makes so much money from lost margins that they will always have some kind of algo that will effectively catch stops within a giving range. A broker can clear your stop with 50 pips and it is totally legal.
Volatility is my friend as higher volatility adds value to the Option. Options impact the spot market as most traders and brokers delta hedge in the spot market creating even more volatility that allows the brokers to profit from retail stops and other traders to force prices in the asset to reaching strike. This is similar to the futures market, in relation to the Chinese and Copper and the US and Oil.
So derivatives have become the financial weapon of choice by all institutions, so they make money and everyone else doesn't. So the big question is why are so many still playing the broken FX spot markets? Well, I can't answer that, I however think sharing the truth benefits us all. So any questions on Options let me know and this is not binary Options...
Thanks all!
If you don't know what it is here is some information I looked very hard for a broker that did these as I know the spot market of traded must be done via derivatives due to broker manipulation in the spot market, I tried TD Ameritrade and Options house both in the US and they would not service European clients, so couldn't do I located a Cypriot broker through a friend that offered them in the UK and had FCA cover. They had been around since 2003 so good enough for me. I have used them for coming on 3 years and they are perfect and they offer real Vanilla Options.
In banking most of our products are bespoke so regulation, etc is just a song and dance. So seeing the large spot FX market eating away hard earned coin from traders isn't surprising at all in the absence or inaccessibility of derivatives. I am 100% positive it is impossible to make consistent gains in the FX market without a derivative hedge or outright derivative trade. Many will claim it is possible but it is not in reality, you would be better of buying the asset non-leveraged and holding for a few years. You have a better chance of making money.
The advantage in being an Options trader is I never have to have a stop loss. The broker makes so much money from lost margins that they will always have some kind of algo that will effectively catch stops within a giving range. A broker can clear your stop with 50 pips and it is totally legal.
Volatility is my friend as higher volatility adds value to the Option. Options impact the spot market as most traders and brokers delta hedge in the spot market creating even more volatility that allows the brokers to profit from retail stops and other traders to force prices in the asset to reaching strike. This is similar to the futures market, in relation to the Chinese and Copper and the US and Oil.
So derivatives have become the financial weapon of choice by all institutions, so they make money and everyone else doesn't. So the big question is why are so many still playing the broken FX spot markets? Well, I can't answer that, I however think sharing the truth benefits us all. So any questions on Options let me know and this is not binary Options...
Thanks all!