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Client Advantage |  | ||
Retail Traders “… Trading is all about strategy and execution. FX Bridge’s Strategy Optimizer™ is a tool I could no t trade without…” Daniel Cobbs - Trader
FX Bridge further empowers Forex traders with Strategy Optimizer — joining Risk Manager™, Pricing Modeler™, and Margin Calculator™ as the latest addition to the Total Position Awareness™ suite of analytics on its ProTrader Plus™ spot, CFD, and options platform. Strategy Optimizer gives traders an automated tool to find the highest profit/lowest risk combination of options for any given strategy. Strategy Optimizer scans and analyzes the profit/loss profiles of thousands of permutations of long and short puts and calls within all strikes and expirations to arrive at the top selections ranked by ra te of return. It also has analytical tools to evaluate and compare each strategy’s potential performance under various time and price scenarios, eliminating tedious analysis and insuring the optimal strategy every time.
FX Bridge, believes that standardized exchange-style (not exchange-traded) options are about to take on the same phenomenal growth path in retail FX as US exchange-traded equities and futures options have, and will become the fastest growing retail FX trading product. “Retail FX has matured over the last ten years. The space has become crowded with dealers and competitive advantage comes down to the tightness of dealing spreads. Retail FX traders have become much more sophisticated. Where retail traders were once content to simply trade online, they now demand (and get) robust trade stations, lightening-fast price feeds, instantaneous executions, slick chart packages, and algorithmic trading. Although potentially quite profitable, offering retail options trading poses unique risk for the FX dealer. Options are non-linear, multi-dimensional derivatives, which can require specialized training and powerful tools to manage risk properly. Retail FX options traders tend to be buyers of out-of-the-money near term options. These options pose unlimited potential with limited risk for the buyer. For the dealer, offering FX options brings the opposite: limited return with unlimited risk. These out-of-the-money options, however, more often than not expire worthless, compensating the dealer for assuming and managing the risk transferred from the retail customers. Without effective risk management systems and tools in place, the dealer assumes far more risk than the collected premiums warrant. When the various types of market risks are properly measured, monitored, and hedged, offering FX options to the retail market can be a highly profitable enterprise for the FX dealer. For more information download the Risk Management for Options PDF
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