Category Archives: Leverage with Options

All FX Bridge Clients Weather CHF Storm

FX Bridge is pleased to report that all customers using its ProTrader Plus same-account spot and options trading platform weathered the SNB announcement and the ensuing volatility in CHF pairs in fine shape.  In fact, options traders and spot traders utilizing options risk management strategies fared substantially better on average than did spot-only traders. FX […]

Read More

Money Changers using Options

Here’s another example of a company with ties to Foreign Exchange that is enhancing their offering with options.  With the most recent announcement with Fenics, TTT Moneycorp Ltd “MoneyCorp” is adding the award winning risk management system, Fenics Professional, to their back-office. Why would a company with over 50 years experience in exchanging currency for […]

Read More

FXIC Video – Options The Next Wave for FX

Is 2014 the year that FX options will break out? Options saw the largest percentage growth of 60% in the 2013 BIS Survey. Dodd-Frank and other regulations are ushering options onto exchange and SEF venues. How will the resulting product standardization and enhanced transparency expand trading opportunities for the buy and sell side? Will these […]

Read More

Leverage with FX Options (Part 2 of 2)

Buying Options to Gain Leverage Long options offer traders an exceptional amount of leverage for directional trades, especially for short-term time horizons. Here is an example of how leverage with options works. The spot market is trading at 1.1000. At 10% volatility, 30-day 1.1200 1.1200 call options are worth .0051. If the contract size is […]

Read More

Leverage with FX Options (Part 1 of 2)

Buying Options to Gain Leverage Long options offer traders an exceptional amount of leverage for directional trades, especially for short-term time horizons. Option purchases (buying a call or buying a put) are often cited as attractive trading strategies for directional trades because of the limited loss associated with being an option holder. The premium paid […]

Read More