True. Usually if a barrier is breached there're lots of stop loss orders clustered right behind it. Knowing what you know already you should know who placed them there and where to place your orders
There're some other ways in which options influence spot but I don't have much time now to discuss it.
Happy trading
Quote:
Originally Posted by supremeChaos This involves FX Options.
1.44 is eur$ exchange rate (1.4406 is the high last Friday/late Thursday). it must have something to do with this.
13.5 level? i have no idea.
800mln is a value/amount in euros possibly involved in the transaction related to the barrier.
"barriers" can be literally looked at as barriers: something that hampers/prevents. in the above article, an Asian CB (Central Bank) has an interest for price (of eur$) not to touch &/or exceed 1.4450 (this Asian CB set up this 1.4450 barrier). every time price nears 1.4450, this... |