Tag: Forex
Guide to Forex Options Trading Part 10: Option Volatilities
Option volatilities are a measure of the magnitude and frequency of the changes in the price of a currency. On the other hand, implied...
Guide to Forex Options Trading Part 9: Risk Reversals
Risk reversals reflect the expectation of the market in terms of the direction of an exchange rate. When used in the correct context, risk...
2013 last push amid mixed reviews
2013 is about 2 weeks away from being closed in our trading books but markets across the face of the Earth are vying to...
Guide to Forex Options Trading Part 8: Theta and Vega
Theta
Theta measures the time decay associated with an option, which is the amount that an option will lose each day as a result of...
Guide to Forex Options Trading Part 7: Delta and Gamma
The price of options don't always move in exact correlation to the price of the underlying currency pair, as other factors such as volatility...
Guide to Forex Options Trading Part 6: Hedging Strategies
One of the most common uses for FX options among forex traders is to use them as a hedge against cash positions. Today, we're...
Guide to Forex Options Trading Part 5 – A Worked Example
In the previous instalments, we've looked at the differences between the various types of option. Today, we're going to look at an example of...
Guide to Forex Options Trading Part 4 – Pricing
There are several factors that influence the value of options. These are:
Intrinsic value
This is a measure of how much the option would actually be...
Guide to Forex Options Trading Part 3 – Why Trade Options?
There are a number of reasons why options are appealing to traders. Here are some of the main ones:
Downside risk is limited to the...
Guide to Forex Options Trading Part 2 – SPOT Options
Yesterday, we explained the two main types of traditional call/put options for forex trading. Today, we are going to look at the other category...
Guide to Forex Options Trading Part 1: Traditional Options
Although options are more commonly associated with the stock market, these financial derivatives can also be used to trade the currency markets. Although it...
Safe-Haven Yen Reverses Recent Losses as Global Markets Fall
Global stockmarkets fell yesterday, driving investors into the arms of the Japanese yen, which has long been considered a 'safe haven' for value in...
Saxo Bank wins Best Broker Award at Forex Magnates Summit
On Tuesday, leading FX industry website Forex Magnates held its annual awards ceremony at the Grange Hotel in London. All in all, 750 of...
The Dilemma of Kicking the Can
Yes, the US Government is back in normal operation. Yes, the US Government averted default in their credit obligations. Yes, the US Government unlocked...
Interview with Online Forex Pioneer Marc Prosser
Today on Traders DNA, we have the pleasure of an interview with one of the true pioneers of the online Forex industry, Marc Prosser....
OANDA Launches Marketpulse Trading Portal
There has been something of a surge recently in the popularity of Forex trading portals, with the popular Forex Factory breaking into Alexa's top...
Interview with Francesc Riverola, founder and President of FXstreet.com
Traders DNA has the pleasure to interview Francesc Riverola, founder and President of FXstreet.com. Francesc was one of the key players in the inception...
The $5.3 Trillion Forex Market Explained – Infographic
The recent publication of the Bank for International Settlements' (BIS) Triennial Central Bank Survey on Foreign Exchange (Forex) has had a massive impact on...