Forex Cryptocurrency General Chit Chat Thread 2019

[MrPippen]

Lifeless.......

31 min EUR ECB's De Guindos Speaks
22:00 USD Cap Goods Ship Non Defense Ex Air (MoM)
23:10 EUR ECB's Praet Speaks

Maybe later ECB can create some fireworks?

I won't know tho..

 

[MrPippen]

Oh mate. Oh god. No. No no no no no.

That $25k “cash available” is not “unrealised profit”. It’s the actual cash in your account, including the premium you received for selling options.

The reason that number keeps going up as you sell options is because it counts the premium you’re receiving for each option.

But that’s not “your” money. It doesn’t become “profit” unless the options move out of the money and start decaying. Right now, you’ve got about negative $13,000 worth of options that get offset against that cash.

You’re confusing “premium received” with “profit earned” as if the options are all guaranteed to go to zero.

Your actual unrealised PnL is that $1400-ish number at the top of the “P/L (USD)” column.

And the “account value shield” is not a guarantee. If your positions start going against you, you’re not guaranteed to walk away with $10k. That’s just the level at which Saxo will automatically start cutting your positions, but they’ll sell them at whatever price they can get. That price might be close to the market—or, if we have a flash crash, the price that Saxo can get might be a loooong way away from where the market was trading. You might walk away with $10k or you might walk away with a lot less.

Please, mate, I’m begging you - stop before you hurt yourself.

Why do you even bother with him?

 

[MrPippen]

Account value went from $12505 to $12562 in just half a day trading... $57 profit from doing nothing.

Multiply by 250 trading days is $14250

So doing nothing for a whole trading year gives out $14250 from trading capital of $5000

That makes a profit of 285 % p a

jskm. can teach me?

 

[MrPippen]

Account value went from $12505 to $12562 in just half a day trading... $57 profit from doing nothing.

Multiply by 250 trading days is $14250

So doing nothing for a whole trading year gives out $14250 from trading capital of $5000

That makes a profit of 285 % p a

If I give you $100,000, after one year I will have $385,000 right?

 

[MrPippen]

No one trading ah?

 

[MrPippen]

If it is not my money, what is it doing in my account??

 

[MrPippen]

FCS got terminated again

 

[MrPippen]

That is what happens to trolls

Every forum must have trolls. It is nature of life.

 

[MrPippen]

Makes sense

So you trade options and you hoot both long and short at the same time?

 

[MrPippen]

Hello guys...which is consider the safer safe haven, CHF or JPY?

Or since the un-pegging, CHF no longer considered safe haven?

 

[MrPippen]

No I don't hoot any how...there is a system to it that has been tested through extreme situations...the most extreme I have seen was Lehman fallout....20 big figures in 2 or 3 hours....blood in the streets

but each time you enter, you will buy both long and short options, right? with same expiry date?

 

[Shiny Things]

If it is not my money, what is it doing in my account??

Try withdrawing all $26,000 and see how far you get.

-------

For anyone else reading this who wants to learn how options work:

• VB sold some options. He receives premium (basically, cash) for selling those options.
• In return for receiving that premium, he takes on a liability: he's on the hook to pay up if the market goes against him by the time the options expire.

Just eyeballing it:

• He has $26,000 cash in his account;
• But his account value (including the negative value of the options) is about $13,000;
• So he has about negative $13,000 worth of options.

The broker will require you to keep at least $13,000 of cash in your account against that negative-$13,000 of options value, because they want to make sure you can pay up. (In practice the broker will require you to keep more than $13k in your account, so that they have more protection if your position starts to go awry.)

If the market goes against you and the options get more negative in value, you'll have to put up even more money to cover the negative value of the options that you've sold. The only way you get to access the full $26,000 is if the options all decay to zero over the next nine months, and all of them expire worthless. If even one of them expires in-the-money, then you start losing.

If you sell more options, then that "cash available" number will go up - because you've received more option premium. But you'll also have a bigger liability, and a bigger risk that at least one of your options will go bad. That "cash available" isn't available to you until the option decays in value.

 

[Shiny Things]

but each time you enter, you will buy both long and short options, right? with same expiry date?

He sells options, he doesn't buy them. It's like selling insurance - you get paid a little upfront, but you have to pay out a lot if something goes wrong.

Hello guys...which is consider the safer safe haven, CHF or JPY?

Or since the un-pegging, CHF no longer considered safe haven?

Ehh, either or both. I've always thought the idea of "safe-haven currencies" was a bit nebulous, but if you're just looking for a general category of "things people run to when risk assets sell off", the short list is Swissie cash, yen (specifically JGBs), or US Treasuries.

 

[atf0007]

So are you still saying the money in my account is NOT my money ???

Dun even know how to read your own brokerage statement and you say you option expert ?!?
so much for trade small win big... lookz like trade small lose big.
you zhun bo? Die also dun know how you die....

Talk so hao lian but actually like frog in the well.... kena exposed liaoz. Better take advice to stop selling options... if so eazy, everyone millionaire liaoz.

 

[atf0007]

but each time you enter, you will buy both long and short options, right? with same expiry date?

you kena smoke liaoz…. still asking him? see his pictures - all sell only where got buy?

 

[Shiny Things]

So are you still saying the money in my account is NOT my money ???

That is exactly what I’m saying.

You have about $26,000 cash in your account, but against that, you have negative $13,000 worth of short options positions. Until those options expire in nine months time, you can’t spend the full $26,000 (and they have to expire worthless; if they expire in-the-money then you have to pay up!).

 

[atf0007]

That is exactly what I’m saying.

You have about $26,000 cash in your account, but against that, you have negative $13,000 worth of short options positions. Until those options expire in nine months time, you can’t spend the full $26,000 (and they have to expire worthless; if they expire in-the-money then you have to pay up!).

yah loh - some people say like high vol wor…. the higher the better..... I think the higher the vol, the bigger the hole in the account leh - should call it the Holey grail ah....

 

[atf0007]

In this world, there are things that you can see and there are those that you don't see...if you don't see it, no matter how you will not know of it...so if you don't know then it is also that you don't know what you don't know

Must throw back this quote to Vanilla leh…. so zhun!

 

[Shiny Things]

I asked the manager at the support desk at saxo about what you said... he says that EVERY penny in my account is my money and I can take out ANY amount I like at any time I like...so it would seem like I have an expert here and an idiot here also as both your views are exactly opposite...the thing is which is the expert and which is the idiot ?

Just to be absolutely crystal clear: there is not $26k in your account. There is only $13k.

The $26,000 number is not your unrealised PnL; it’s the cash in your account, but against that, you have about negative $13,000 worth of short options, so your total account value is about $26k minus $13k = $13k. Your unrealised PnL is about $1700.

I’ll say it again: try withdrawing $26,000 from your account and see how far you get.

Also don’t go around calling people idiots. Just because this is the internet doesn’t mean you can be an asshole.

 

[DukeCS33]

I am not going to do a stupid thing like that...why would I close my account just because an idiot wants to prove that he is wrong....makes no sense

It is obvious who the idiot is. You do not need to close your account.

You do not even know how your own brokerage works. Your account value is 12.8k and you want to withdraw 26k? That said, if you are dealing via Saxo Bank, you are subject to retail fx option spreads. And they are elephant wide - call yourself a pit trader when basic price discovery skill is lacking. Or unless you do not even know how to price options and are just taking any prices thrown to you. The way you are conducting your trading is already flawed - so much for your self proclaimed higher level of knowledge.

Shiny Things, some people cannot be helped. And it is also a waste of time trying to help those who are too proud to be receptive.