Currency Futures Options vis-a-vis Equity Options?
- Ask/bid spread is low. Both buyers and sellers costs are controlled.
- Commissions don't eat away at the account equity when frequent adjustments are done. Sellers benefit from this mostly.
- 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 detailed research or acquire skills to read balance sheets.
- Equity options trader has to understand pre-open Gap trading trantrums, earnings, dividends, mergers or takeovers, bankruptcies, various accounting and performance ratios and matrices.
- 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 five days a week, 23 hours a day (excluding 4 - 5 pm USA time break).