Please explain why you feel this way, taken from your explaination on currency options:

“…I am not advocating that you should abandon the fx spot market and only trade options – far from it – they are an excellent instrument which should be used in conjunction with the spot market which is what we will look at next – hedging our positions using an option…”

As an equity options trader, I never buy a stock..why would I do that when for less money I can own the stock synthetically and less risk.

Their is no gain I could realize owning the stock that can’t be realized owning the CALL on that stock.

As I understand the margin on currencies is 2%…is it the same on currency options?

I don’t have access to pricing to determine if their is a way to reduce or eliminate the cost of a synthetic position in currencies or to know if their are LEAPS.

Structurally in currencies can I buy a sell put and buy a call at PAR(?) and then sell a CALL for a date in the future at a higher spot price and sell PUT for a date in the future at a lower spot price bringing in premium on both sides..in addition in case the currency in-the-money fell as was assigned to me…I would need to own a PUT to get out of it.

You know pairs….I don’t….what pairs would this work given the premiums?

Thanks.