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Forex Trading and Forex Option Strike Prices

Discussion in 'General Forex Talk' started by TenPercenter, Jul 4, 2010.

  1. TenPercenter

    TenPercenter Recruit

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    I have a question about Forex option strike prices and forex trading. It seems to me that the price action often heads to the big round numbers (1.2500, 1.2450) and these numbers also usually coincide with option call and put strike numbers.

    Could someone please shed some light on this correlation. I have heard that when the options are near to expiration then Institutional traders push it down to the strike prices they need to make money on or keep from losing money? What is the importance?

    How do options and spot forex coincide? What would be a way to be aware to improve trading?


    thank you


    10%
     
  2. Pharaoh

    Pharaoh Colonel

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    I've never done forex options, but spot forex also has a tendency to go for round numbers. I'm told it's primarily traders who entered TP, SL, as well as stop and limit orders using round numbers.
     

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