Forex Experts?

Discussions about trading the Forex markets.
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dpmalcor
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Forex Experts?

Post by dpmalcor » Mon Jun 02, 2003 2:14 am

A couple of topics here have touched on basic concepts in forex, and I'd like to extend that a little.

Are there any forum members here making a full time living from forex trading?

I'd love to hear from an expert about basis system development and training/education for forex. I'm currently testing my own system in a simulated account -- I use Lind-Waldock and have been quite pleased with their platform and data (even though their platform/package for regular futures is truly miserable).

Any comments on the following:

Any experience or recommendations on forex courses/training? I see some forex "mentor programs" on the internet that seem interesting.

Do certain technical indicators work better or worse with forex? In my own experience I've found traditional indicators and candlesticks seem to work well enough.

Anyone have a career background in forex?

I'll stop there -- hope someone can comment on these topics.

Thank you.

Patrick

Josh M.
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Post by Josh M. » Tue Jun 03, 2003 1:55 pm

I'd like to chime in if possible. I wanted to start a new topic but its not permitted however I think it will fit in here somewhat. I'm about to look into building an options trading system similiar to the one i use in futures for a currency hf in my area and am investigating the characteristics of forex options.

I've been told, and perhaps some can clarify, that when a forex option is traded the rules are different. For example, the expiration date is flexible, the strikes are flexible, the actual odds are flexible and exotic structures are regularly available. Can anyone comment further in addition to the questions above?

Jester

american and european options

Post by Jester » Tue Jun 03, 2003 6:54 pm

American options are exercisable any time before expiration and on expiration.
European options are exercisable only on expiration date.

This may sound simple, but in the FX world most folks trade European options (+97%). Some guys like to trade a short option strategy, and the smart short option guys sell American options to get a little more premium.

The exotics get a little complicated depending on the structure. Knocks, barriers, and choosers are tough to price. But you can set up better risk parameters than standard OTC plain vanilla options.
If you have an account at a bank and have access to the inter-dealer market, the liquidity in exotics is pretty good. Just remember to use a good option pricer so you don't get your face ripped off. All the banks us Fenics for pricing options and the plain exotics, then they use a prop model for everything else.

Jester
:P

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