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James · 06-05-2005, 05:02

1. Buy euro now at market (1.2950) with 150 pip stop loss at 1.2800, using 2x leverage.
2. Buy a "one touch " (OT) option which pays 300 pips if the market touches 1.2800 before Friday next week, cost is 137 pips
3. Buy a "double touch" (DT) option which pays 300 pips if the euro touches 1.2700 or 1.3200 before Friday next week, cost 116 pips

So if the euro rises to 1.3200, we make 250 pipsx2 on the trade plus 300 pips for the DT option. The cost has been 253 pips for the two options. Net result +550 pips

If the euro falls to 1.2800, we lose 150 pipsx2 on the trade and make 300 pips on the OT option. The cost of the OT option has been 137 pips. Net result -137 pips

If the euro falls further to 1.2700, we make 300 pips on the DT option. The cost of the DT option is 116 pips. Net result +184 pips.

06-05-2005, 05:02	#2
James Team Forex Join Date: May 2003 Posts: 1,229 Downloads: 0 Uploads: 0 Rep Power: 0	Re: Trading The NFP's 1. Buy euro now at market (1.2950) with 150 pip stop loss at 1.2800, using 2x leverage. 2. Buy a "one touch " (OT) option which pays 300 pips if the market touches 1.2800 before Friday next week, cost is 137 pips 3. Buy a "double touch" (DT) option which pays 300 pips if the euro touches 1.2700 or 1.3200 before Friday next week, cost 116 pips So if the euro rises to 1.3200, we make 250 pipsx2 on the trade plus 300 pips for the DT option. The cost has been 253 pips for the two options. Net result +550 pips If the euro falls to 1.2800, we lose 150 pipsx2 on the trade and make 300 pips on the OT option. The cost of the OT option has been 137 pips. Net result -137 pips If the euro falls further to 1.2700, we make 300 pips on the DT option. The cost of the DT option is 116 pips. Net result +184 pips.