Why do prices move in the same direction but with a lag on correlated instruments? - page 18

 
osmo1709 #:

I've already written you that you're misdirecting your pair trading trades - you've actually bought NZD twice. You got lucky, but that doesn't make much sense - you paid the spread twice. And if the price had gone the other way - there would have been a double loss.

Pair trading is different

 
I think there is a win-win strategy when trading two different instruments on the same underlying asset. This is trading on SPOT and buying options at the same time, so the loss is always fixed and the profit can be infinite. In fact, the Options are just an insurance instrument for spot market positions, although one has to work on higher TFs, from H4 if not on D1. The main problem of this kind of trading is the lack of a universal account on which both position and options can be opened at the same time. Why nobody uses it, I do not understand.
 
Mihail Marchukajtes #:
I think there is a win-win strategy for trading two different instruments in the same underlying asset. This is trading on SPOT and buying options at the same time, thus the loss is always fixed and the profit can be up to infinity. In fact, the Options are just an insurance instrument for spot market positions, although one has to work on higher TFs, from H4 if not on D1. The main problem of this kind of trading is the lack of a universal account on which both position and options can be opened at the same time. Why nobody uses it, I do not understand.

futures and options live together in single brokerage accounts for a long time (not forex)

 
transcendreamer #:

futures and options live together in single brokerage accounts for a long time (not forex)

Why should they? But not in MT5. In Quickk, maybe. I don't know, I haven't tried it...
 
osmo1709 #:

Failure! It's not a paired trade... better to go to the factory...

(at best there will be a common cross with a small tiny amount of common currency remaining)

 
Mihail Marchukajtes #:
Why would it be? But not in MT5. In Quickk it might still be. Don't know, haven't tried it...

not in mt5 unfortunately 😕

Yeah, I meant Quick.
 
Mihail Marchukajtes #:
I think there is a win-win strategy when trading two different instruments on the same underlying asset. It is trading on SPOT and buying options at the same time, thus the loss is always fixed and the profit can be infinite. In fact, the Options are just an insurance instrument for spot market positions, although one has to work on higher TFs, from H4 if not on D1. The main problem of this kind of trading is the lack of a universal account on which both position and options can be opened at the same time. Why nobody uses it, I do not understand.

and win-win-win

 
Dmitry Fedoseev #:

and win-win-win

Why do you think so?
 
Mihail Marchukajtes #:
Why do you think so?

Simple - there are no miracles.

Reason: