Chicago CME Option Volumes in MT4
1. OPTION - the right (not an obligation, unlike a futures) to buy / sell an option contract at the price specified in the option contract. The buyer pays a premium to the seller for the right to purchase.
As a rule, options are used to protect the acquired asset. For example, in this way you can protect against changes in the exchange rate for your product at the time of its sale. You do not want to lose profit if, say, the dollar depreciates by 10% at the moment your product is sold for dollars. Therefore, you buy a put option, and if the dollar falls, you will receive a profit for the option, which neutralizes the losses from the fall in the rate. Since you, having bought an option, received such a right, and not an obligation, you may not use it if the rate remains the same and sell the goods at the current rate that is beneficial to you.
Types of options
Depending on which direction we trade, there are 2 types of options: call and put:
In the meantime, there is no need to worry about it. ”
A call option is an option that gives the right to buy an asset at a fixed price.
A put option is an option that gives the right to sell an asset at a fixed price.
Friends, let's start with a little theory.
Let's find out what an "Option" is and why people buy it.
2. STRIKE (exercise price, strike price) is the strike price specified in the option contract, at which the asset can be sold or bought if the option is exercised.
3. PREMIUM ON OPTION - the amount of money paid by the buyer under the option agreement to the seller. In its economic sense, this premium is a payment for the risk of an unfavorable change in the price of the underlying asset underlying the option transaction, which is assumed by the option seller.
4. OPEN INTEREST is the number of open contracts (obligations) in a particular market. Open Interest is calculated for the futures and options markets. It is used as an indicator of market strength, as well as to measure the trading activity in the market.
5. TRADED VOLUME is the volume of sales of contracts within a particular strike. Contracts can be new (the next day they will become Open Interest), or already existing, but they can be resold by speculators within the strike for a larger / smaller premium.
WHY DO I NEED OPTIONAL VOLUMES (CONTRACTS) FOR TRADING ON THE FOREX MARKET IN MT4?
The answer is simple. Using the data of option contracts, get daily, up-to-date information on options and option levels calculated based on this information. Where do you get them from?
From the Chicago Mercantile Exchange:
You will be able to see and use in your trading not derivatives from changes in the market situation (which are the vast majority of indicators), but actual changes in the mood of "big money" and follow the large market participants directly, understanding their trading philosophy and building on this your profitable trading system.
There are two ways to obtain information on current contracts:
1) Manually, learning to use the CME website and "read" the information on it.
2) Using the fully automated OPTION PROFIT indicator .
The second method, of course, is much faster and, most importantly, more convenient.
OPTION PROFIT is a level indicator. built on the basis of the analysis of option contracts. The indicator builds levels online.
The author of the indicator guarantees that all levels that draw any version of the indicator are taken directly from the Chicago Mercantile Exchange (CME). The delay of application in the terminal is no more than 3-5 minutes from the time of their publication on the CME server. This allows you to directly analyze the behavior of market makers (the largest market participants) on the fly, understand where the real market volume is concentrated here and now, and open an order based on this data.
MORE ABOUT THE INDICATOR YOU CAN FIND OUT IN THE VIDEO REVIEW OF ITS DEVELOPER:
Our video review on this indicator:
In simple terms, what is the indicator for?
Option analysis with
Option Profit indicator
- Shows significant levels;
- Shows entry and exit points;
- Save on training;
- Will help you earn money;
You can familiarize yourself and feel all the benefits of trading with Option Profit right now by downloading its free trial version from the link below:
Good luck, Friends, and be in trend!
Instructions for use