Does anyone know of a good internet-based broker where I can set up a trading account to deal in derivatives? Davy seems to deal in CFDs, but nothing else.
I'm doing a master's course in financial maths, which mostly focuses on derivatives pricing, so I know the risks involved in dealing with derivatives.
I'm not planning on betting the farm either, probably just 1,000 or so to pick up some experience, so somewhere that would allow me to trade in very small amounts would be ideal.
Cheers for the advice
Try interactive brokers. You need to be careful with options, the smart man is selling the options, not buying. A bit like a bookies, you are better off laying the bets.
I reckon it's a bit more complicated than just "selling is good, buying is bad". It depends on the terms of the option, how you have it hedged, what the market volatility is, and a lot of other factors.
In fact, I would argue the other way: that selling is more dangerous than buying. I think in "fooled by randomness" taleb suggests that "options sellers eat like chickens and s**t like elephants". One of the first things you're taught when learning about derivatives is that it's very risky to sell a naked option.
Cheers for the advice, I'll take a look at interactive brokers.
I reckon it's a bit more complicated than just "selling is good, buying is bad". It depends on the terms of the option, how you have it hedged, what the market volatility is, and a lot of other factors.
In fact, I would argue the other way: that selling is more dangerous than buying. I think in "fooled by randomness" taleb suggests that "options sellers eat like chickens and s**t like elephants". One of the first things you're taught when learning about derivatives is that it's very risky to sell a naked option.
Cheers for the advice, I'll take a look at interactive brokers.
I make a living selling options, I am yet to met a person who makes a living buying them.
I make a living selling options, I am yet to met a person who makes a living buying them.
I find this hard to believe
naked selling options is not for the inexperienced, and incorporates massive downside.
Why on earth would you start to invest in options if you've no experience other then a msc in pricing them. The market isnt thick you wont find a sweet deal with a incorrect valuation.
Start off with something simple.
Why on earth would you start to invest in options if you've no experience other then a msc in pricing them. The market isnt thick you wont find a sweet deal with a incorrect valuation.
Start off with something simple.
The reason I'm interested is because it would demonstrate to a potential employer that I am keen to work in the field. I'm not out for a get-rich-quick scheme, in fact I'd be happy just to break even.
What I'm after is some real-world experience in dealing with derivatives.
The reason I'm interested is because it would demonstrate to a potential employer that I am keen to work in the field. I'm not out for a get-rich-quick scheme, in fact I'd be happy just to break even.
What I'm after is some real-world experience in dealing with derivatives.
id try spreadbetting, tends to have lower initial outlay than options.
