MoneyTec 2.0 - Online Forex Traders & Brokers Social Networking Community » Trading Talk » Fundamental Trading » Markets key events

[PittsburghFX]

Personally I have not found any good options other than Futures. Liquidity is the only problem.

[jasperforex]

I use options at IG Index and apply the copperchip system. If you want it its on ebay called, how to trade economic data. Like pittsburgh said, you know your maximum risk from the start and with IG you can close at any time, not having to wait for expiry. And then your hands are free to try and catch a move with your fx accounts.

[peaches]

NFP can be a good time to straddle trade

[PittsburghFX]

I have seen thousands among thousands try to straddle the market, very very few with any success. Straddeling only works 25% of the time. Great in theory, but most do not allow enough stop room. Quick unpredictable spikes mainly wipe people out.

For example, Your entry to buy is executed and your long, goes another 20 pips higher in a few seconds, 2 seconds later you are now using the entry to short acting as your stop. You may only lose 10 or 15 pips, but straddeling in the long run doesn't work. You must put your cards on the table and make a clear decision.

[jasperforex]

Options saves all those problems. All you need to do is play when you expect some sort of move. Straight away or eventually, it makes no difference as long as it happens.

[PittsburghFX]

Very well Put.

[AspenFXMentors]

With Brokers now no longer honouring stops and entry orders during periods of high volatility i.e the NFP report straddling the market can now be a very dangerous thing.

The market typically spikes in both directions moving 40-50 pips in both directions in seconds.

It is better to wait for 5 - 10 minutes for the market to settle and then place an entry order above or below the order depending on the NFP figures

[PittsburghFX]

I made a very very nice short entered two days before NFP so I was in position if crap hit the fan. Check it out from my posts on Money Tec. Search my name and see. Made a handsome profit and gave all of my analysis before and after.

[jasperforex]

Originally posted by AspenFXMentors
With Brokers now no longer honouring stops and entry orders during periods of high volatility i.e the NFP report straddling the market can now be a very dangerous thing.

The market typically spikes in both directions moving 40-50 pips in both directions in seconds.

It is better to wait for 5 - 10 minutes for the market to settle and then place an entry order above or below the order depending on the NFP figures

An option system makes the volatility insignificant. But having said that if data is as expected I do use the swings to come out of each side one at a time. But normally there's no need and you just wait for it to settle down and move knowing that you're already in and that as long as a move happens you'll make.

[Baruch]

Originally Posted by jasperforex

An option system makes the volatility insignificant. But having said that if data is as expected I do use the swings to come out of each side one at a time. But normally there's no need and you just wait for it to settle down and move knowing that you're already in and that as long as a move happens you'll make.

I suppose you earn more money if you get out of each side one of a time? How much do you pay for those day-options? And how many big eco news do you trade?

[Baruch]

Originally Posted by jasperforex

I use options at IG Index and apply the copperchip system. If you want it its on ebay called, how to trade economic data. Like pittsburgh said, you know your maximum risk from the start and with IG you can close at any time, not having to wait for expiry. And then your hands are free to try and catch a move with your fx accounts.

It's very strange. Only UK residents can have a standard account with IG Index...

[jasperforex]

IG are UK based so maybe that's why. I pay no more than 40/50 points for my options, that's for any two that I pair. You can close them out seperately and actually that what I did on Friday but you find it will actually make less overall than holding both. On Friday I made about 45% but I could have had 300% if I'd left things to expire.

[Baruch]

Originally Posted by jasperforex

IG are UK based so maybe that's why. I pay no more than 40/50 points for my options, that's for any two that I pair. You can close them out seperately and actually that what I did on Friday but you find it will actually make less overall than holding both. On Friday I made about 45% but I could have had 300% if I'd left things to expire.

Jasper,

300%??!! Wow!! You only need to work one day a month...

40/50 points - for each option or for both pair ?

At what time do they expire?

[jasperforex]

Potentially 300% IF I'd held till the end but... when profits were 45%, at that time I felt that that was probably a good time to close as I had done things slightly differently, in that the method was the same but the actuals were different. All IG day options expire at 8pm but the week ones expire at 3pm.