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“They tell me we're living in an information age, but none of it seems to be the information I need or brings me closer to what I want to know. In fact (I'm becoming more and more convinced) all this electronic wizardry only adds to our confusion, delivering inside scoops and verdicts about events that have hardly begun: a torrent of chatter moving at the speed of light, making it nearly impossible for any of the important things to be heard”
Currencies Futures Options vis-a-vis equity options
- Ask/bid spread is lower than that of equity options.
- Commissions don't eat away at the equity when sellers of fx options make adjustments.
- World's major currencies are far less volatile than the stocks and have a predictable trading range and mean-reversion patterns.
- Currency options trader does not need to do any particular research and acquire skills to read balance sheets.
- Equity options trader has to cope with pre-open and post-close gap trading tantrums, earnings, dividends, mergers or takeovers, bankruptcies, various accounting and performance ratios and matrices. Too many elements causing surprises.
- Currencies' transactions volume is said to be 40 times more than that of all global stocks market combined. Unlike the stock market, the CME Globex currency future options market is open on business days five times in a week and 23 hours a day (excluding 5 - 6 pm USA time break).
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