Thread: Forex Options
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Old 02-02-2004, 21:54   #5 (permalink)
kuepper
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SPOT stands for Single Payment Option Trading. You can set the amount of days/hours before expiration. Fairly large brokerages offer it - most notably RefcoFX (http://www.refcospot.com). I realize it is somewhat like a bet, and there are some websites that sell them like bets. But, the reputable brokerages use industry standard pricing models to calculate the prices. Basically, if I go with the brokerages, it sounds like they offer the options directly from them, instead of via larger exchanges. Granted there is no liquidity (which is the only drawback I see), I think the cheaper minimum contract sizes make up for that.

In my demo account yesterday, I bought a Euro put option for 1.2400 for 35.31, and received 100.00 payment... Obviously not "usual results" but I will continue testing it anyway.
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