Forex spot and options trading
Just thread about options here: https://www.mql5.com/en/forum/178638
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Lately I was thinking how I can integrate forex spot and options trading and I started wondering why I have never read elsewhere about the possibility to hedge over-the-counter trades with forex options?
For example if one opens buy on AUDUSD, one can hedge the position with sell on the options market. In the event it goes against you, you can liquidate both trades, thus paying just the premium and the spread (which should be smaller than the anticipated loss). If it goes as planned you'd let the option expire and pay only the premium that should be smaller than the profit from the OTC trade.
I must admit I am not very knowledgeable about options trading, so this may sound funny to someone more experienced. So guys, what do you think?