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Title: Forex spread betting question Post by: StuartHopkin on October 05, 2017, 02:06:58 PM Say I have a time option to buy $100 on the 31st October booked 6 months ago at a rate of 1.2
Lets say the rate goes down a little this month to 1.3 on the 31st. The $100 is going to cost me £83.33 on the 31st but once i have this it is only going to be worth £76.92, a loss of £6.41. Is it possible to reduce the loss through spreadbetting? I am not familiar with spread betting at all but in my head I want to take over 1.250 for 10p a point? Title: Re: Forex spread betting question Post by: DungBeetle on October 05, 2017, 03:28:27 PM If you’re worried about the rate going against you can’t you exercise now? I thought that was how fx time options work. Otherwise it is just a forward?
Title: Re: Forex spread betting question Post by: StuartHopkin on October 05, 2017, 03:53:31 PM I could exercise now at 1.32 then my loss today is £7.57 but if we get to 1.3 at the end of the month then I've made £1.16 of it back.
I'm kind of looking for a separate position to reduce that loss. I do not think it is possible, but if anyone would know someone on here might! The FX desk at HSBC don't have enough gambling skills! |