FX Options and Binaries

[trendie]

I've just remembered why I came back to T2W!

Does anyone have any books, ebooks, sites, etc, for learning the mechanics of FX options?

Yes, I have already gone through the T2W sticky. And its good.
http://www.trade2win.com/boards/options/8414-t2w-guide-trading-options.html

Specifically, I am interested in FX Options whereby I can make a profit/make some premium for rangey periods. Say, 200-300 pip ranges over a week time-frame.

Any advice on good brokers, etc, would be greatly appreciated.
Any good info on basics of Binaries would also be appreciated.

Purpose: exercise in establishing whether I can reduce/manage my drawdowns better whilst waiting for the "inevitable" cheesy breakouts from ranges, and starting of trends.
I want to satisfy my curiosity as to whether I can monetise ranges, rather than just waiting for them to break before making money on the trends.
Need to see if the costs involved are worth adding an extra weekly component to my essentially day-trading methods.

thanks.

 

[trendie]

No-one?

No-one uses, or knows of, a mechanism, probably built around options, whereby a trade can be constructed to pay off if price remains in a range?

So far, I seem to have gravitated towards Iron Butterflies.
Next step for me is to seek out historical options prices, which is an utter pain.
I think it's because I have to factor in all the greek stuff.
Not sure if it's worth the hassle, but I need proof it's worth it/not worth it.
have a great weekend.

 

[Martinghoul]

There's a lot info out there... I would stick with the various traditional option texts, such as Hull or Natenberg or Sinclair.

As to trades that take advantage of prices remaining in a range, there's a few of those. The simplest variety is a strangle, but you can get as fanciful as you like.

Binaries are, generally speaking, quite a lot more difficult to price properly, even though they're deceptively simple in terms of payoff. If you have specific questions, I am happy to try and help.

 

[doodboy]

hey i discovered binary options and i see potential in it. I just need to know reliable Fixed-odd-betting brokers for Forex.. with flexible expiries (ie: 5 min 10 min to 1Hr ) i dont like long time expiries. i heard lot of negatives on betonmarkets.com so im seeking alternative but similar to their product offering if anyone can private message me some relaible or "lesser evil" as i like to say it when it comes to broker.. i will truly appreciate it.

 

[trendie]

good point doodboy.

Apart from the mechanics of using binaries and options, making sure you trade with a reliable broker is also part of the equation.
So, any insights about good brokers, and comms and spreads, etc, would also be useful as part of this exercise.

 

[trendie]

Any good sources of FX Options prices?
Any recommendations for options brokers?
(have been trawling through cmegroup.com)
thanks