Re:Options Strategies to Trade News With? - PFXGlobal.com Forum

	PFXGlobal.com Forum	Forum Threaded View

Welcome, Guest
Please Login or Register. Lost Password?

PFXGlobal.com Forum

Discussions

General Discussion

Re:Options Strategies to Trade News With? (1 viewing) (1) Guest

Favoured: 0

TOPIC: Re:Options Strategies to Trade News With?

Forum Tools

#4745

Jozu Okane (User)

Senior Boarder

Posts: 34

Options Strategies to Trade News With? 1 Month, 1 Week ago	Karma: 0
As you know trading news announcements can be difficult because of many factors (time of announcement, slippage, etc). In this article Boris Schlossberg talks about using Forex options as an alternative to using spot positions during news announcements to avoid the typical news spot position hazards. Can anyone share their experiences with options during the news?

Report to moderator Logged

Logged

The administrator has disabled public write access.

#4775

superalf (User)

Junior Boarder

Posts: 19

Re:Options Strategies to Trade News With? 1 Month ago	Karma: 0
Jozu, Your link to the article is broken, at least for me. I have never tried this strategy but have read a little about it. I would be very curious to know of others experience with this.

Report to moderator Logged

Logged

The administrator has disabled public write access.

#4782

Jozu Okane (User)

Senior Boarder

Posts: 34

Re:Options Strategies to Trade News With? 1 Month ago	Karma: 0
superalf: Jozu, Your link to the article is broken, at least for me. I have never tried this strategy but have read a little about it. I would be very curious to know of others experience with this. Here another link to that article: <a href="http://www.traderslog.com/forex-options.htm" target="_blank">http://www.traderslog.com/forex-options.htm</a>

Report to moderator Logged

Logged

The administrator has disabled public write access.

#4790

John Jagerson (Admin)

Revved up like a duece another runner in the night

Admin

Posts: 833

Re:Options Strategies to Trade News With? 1 Month ago

Karma: 38

That is an interesting article and using options as an alternative to a spot position is not a bad idea but there is one issue to be careful about. Buying options before a known news event is a little risky because option premiums get ramped up right before the release so know what you are doing before you get into a position like that without realizing that you may be buying the options at a real premium.

Report to moderator Logged

Logged

Trader, investor, author, raconteur, mountain biker, guitar player.

The administrator has disabled public write access.

Forum List

Discussions

General Discussion

get the latest posts directly to your desktop

New poll

What are your weaknesses as a system trader

	Entries
	Exits
	Stop losses
	Money Management
	Capitalization

Before deciding to participate in Forex trading, you should carefully consider your investment objectives, level of experience and risk appetite. There is a significant learning curve to trading successfully in Forex. Most importantly, do not invest money you cannot afford to lose. Forex investing is not ideally suited for investment of retirement (IRA) accounts.

There is considerable exposure to risk in any foreign exchange transaction. The market remains open 24 hours a day for 5 ½ days. This means that unexpected events may affect your investment while you are resting. Any transaction involving currencies involves risks including, but not limited to, the potential for changing political and/or economic conditions that may substantially affect the price, spread, or liquidity of a currency. The most enticing aspect of trading currencies is the high degree of leverage used. Leverage seems very attractive to those who are expecting to turn small amounts of money into large amounts in a short period of time. However, a high leverage refers to the speed at which an account gains or loses money. One cannot hope to make extraordinary gains without taking extraordinary risks. Leverage should be gradually increased, as trading performance improves.

There also additional risks that affect your Forex investments, such as, but not limited to: losing internet connectivity for various reasons (your machine, your ISP provider, your dealer's servers, your dealer's ISP provider), computer or server malfunction, software upgrade disruptions, and inappropriate usage of trading tools. As a result, prudent investors should be prepared for unexpected contingencies by implementing appropriate procedures such as having: multiple computers setup for trading, multiple ISP providers, your dealer's phone number on speed dial to assist with trades, and print outs of account number and open tickets. In addition, investors should always gradually upgrade their operations by starting with a demo testing period, followed by setting up a mini account, and upgrading to a live account if all tests are working to plan.