# Experiences in trading options on overseas markets



## Hung004 (11 April 2017)

Hi 
Can anyone share what their experiences is like with Interactive brokers trading options.

Do u trade the US market?
  If so do have to stay up all night or can u get away with after hours trading?

Do you trade the Aussie options market?
If so, how so they compare with the US market?

What other markets are good to trade in options from Sydney? Tokyo? Canada?

I have full time job and looking trading part time. 
I have gone through a video course in options trading using spreads but this was base in the US.


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## minwa (11 April 2017)

Aussie sucks compared to US in terms of liquidity/slippage/costs. Strictly talking about trading costs - if you are an expert in Aussie stocks and know nothing about US stocks then you can easily override the costs.

After hours trading options - no. You do not have to stay up all night. Sleep later to trade the open or wake earlier to trade the close.

Interactive Brokers is cheap and works.


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## Virge666 (12 April 2017)

I am in my twelfth year of trading options in the U.S. 

I trade for about an hour each night, sometimes every second or third night. In summer I trade in the morning before 8am.

I don't trade the ASX anymore... Much... Sometimes when I am bored I will trade SPI, BHP and CBA but really, my money works harder in the U.S. 

Hong Kong isn't bad... Can quite find the right markets in Europe, otherwise I would be all over it.


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## Warriortrader (13 April 2017)

Im in my 13th year of trading...I do get up in the early hours and I love doing it. I also trade the US Options and I trade for a living.

And like Virge666, I don't trade the Aussie exchange. To illiquid market, really.

I don't use IB, but know several that do, and they are all ok with it. 

And as an Australian, we don't have too many choices. IB, OptionsXpress are some of the brokers that do allow us to trade the US markets.

Hope this helps


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## Trader Duck (16 April 2017)

I have an account with IB but do most of my trading these days through Saxo CM .


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## Hung004 (16 April 2017)

Thank you for your replies


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## Virge666 (22 April 2017)

Trader Duck said:


> I have an account with IB but do most of my trading these days through Saxo CM .




I have a SAXO account. And I cannot for the life of me work out how you use it for options trading.

It's their a different platform that you are using besides the base one they give you??


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## Trader Duck (24 April 2017)

I use the standard Saxo Trader 2 platform not Saxo Go.

1.   Click on the "Chains" tab next to the "Account" tab.
2.   Then up at the top click on the "Trading" tab.
3.   Then drop down the "Option Trading" menu and select"contract option chain" at the very bottom of the menu.
This will open a blank option chain screen in the Chains tab.
4.   Then use the instrument box drop down menu to find what you want to trade.

Note:   I've noticed that the first time you open some screens in ST2 they can take up to 30 seconds to open but after that they open almost immediately. 

Hope this helps.


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## Virge666 (26 April 2017)

Thanks Duck, 

I dont have that software - will just carry on with TradeStation and IB


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## Sonny S H Tan (2 May 2017)

minwa said:


> Aussie sucks compared to US in terms of liquidity/slippage/costs. Strictly talking about trading costs - if you are an expert in Aussie stocks and know nothing about US stocks then you can easily override the costs.
> 
> After hours trading options - no. You do not have to stay up all night. Sleep later to trade the open or wake earlier to trade the close.
> 
> Interactive Brokers is cheap and works.



I am trading using Interactive Brokers and I find it quite easy to use. I do not live in Australia but is planning to migrate to Australia. I contacted Interactive Brokers and they told me that IB are not allowed to provide margin for Australian residents. Is that true? Without margin, it would not be so interesting.


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## Titch (21 June 2017)

Hi guys,
Looking for mentor in trading options. I do not have a clue where to start. I have a very basic understanding of how the options process works. I have read a bit about options, but there is no faster way of learning other than by doing. If someone out there would be happy to be a mentor and help me get on my feet it would be very much appreciated.
Hanging on and hoping for a positive reply
Thanks
Ron


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## Warriortrader (22 June 2017)

Sonny S H Tan said:


> I am trading using Interactive Brokers and I find it quite easy to use. I do not live in Australia but is planning to migrate to Australia. I contacted Interactive Brokers and they told me that IB are not allowed to provide margin for Australian residents. Is that true? Without margin, it would not be so interesting.




Sonny, IB will provide you with a Margin Account if you trade under a Business...either with an ABN (Australian Business Number) or as a trustee of a trust.


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## Warriortrader (22 June 2017)

Titch said:


> Hi guys,
> Looking for mentor in trading options. I do not have a clue where to start. I have a very basic understanding of how the options process works. I have read a bit about options, but there is no faster way of learning other than by doing. If someone out there would be happy to be a mentor and help me get on my feet it would be very much appreciated.
> Hanging on and hoping for a positive reply
> Thanks
> Ron




Ron - Have a look at your Private Message Inbox, pls.


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## Wolverine77 (23 June 2017)

Warriortrader said:


> Ron - Have a look at your Private Message Inbox, pls.




Warriortrader, i am the same situation. Have a basic understanding though would think i would be in a better position if i received some advice from someone with more experience. I appreciate it.


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## Warriortrader (24 June 2017)

Wolverine77 said:


> Warriortrader, i am the same situation. Have a basic understanding though would think i would be in a better position if i received some advice from someone with more experience. I appreciate it.




No worries...have a look at your inbox too...cheers


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## siouxsieandthebanshees (30 June 2017)

Warriortrader said:


> Sonny, IB will provide you with a Margin Account if you trade under a Business...either with an ABN (Australian Business Number) or as a trustee of a trust.




Does anyone have any idea what category of account to setup with IB if one is opening it for a trust (with ABN) with a company trustee (also with ABN)?


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## Warriortrader (30 June 2017)

siouxsieandthebanshees said:


> Does anyone have any idea what category of account to setup with IB if one is opening it for a trust (with ABN) with a company trustee (also with ABN)?




You can apply for a Margin Account (even Portfolio Margin if you push for it and want it)


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## steve4046 (11 July 2017)

Hung004 said:


> Hi
> Can anyone share what their experiences is like with Interactive brokers trading options.
> 
> Do u trade the US market?
> ...



IB works well...you kidding yourself if you think you can trade Australian markets. Trade US options and future and you will have a much easier existence. Liquidity is the key. Australia has no significant liquidity in anything, so move on. Trade only US options and global futures. The best source of free education by a long long way is tastytrade.com if your serious about making money then this is the path... if you want other local advice follow moneylogic.com.au soon you will see the Australian market has little to offer.


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## steve4046 (11 July 2017)

Titch said:


> Hi guys,
> Looking for mentor in trading options. I do not have a clue where to start. I have a very basic understanding of how the options process works. I have read a bit about options, but there is no faster way of learning other than by doing. If someone out there would be happy to be a mentor and help me get on my feet it would be very much appreciated.
> Hanging on and hoping for a positive reply
> Thanks
> Ron



Hi Ron
If your serious about learning and trading profitably with a true edge then you need to understand you need to trade only the US options and futures markets...and yes you need to do it. There is not enough liquidity in Australia to do anything without significant risk regardless of what you have heard or been sold. If you wish to know more look me up via www.moneylogic.com.au and we can get you on the right track, no fees charges or anything to learn.


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## minwa (11 July 2017)

From your site:

_"Procedures

The client establishes an account with Interactive Brokers. The type of margining selection is ‘portfolio margin’. The client then links the account to the Money Logic master account._"

How do new Australian individuals open portfolio margining accounts ?


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## bellenuit (31 August 2017)

Virge666 said:


> I am in my twelfth year of trading options in the U.S.
> 
> I trade for about an hour each night, sometimes every second or third night. In summer I trade in the morning before 8am.
> 
> ...




I have just dipped my feet in the water with US options trading with IB. I have to date only used writing of covered calls and usually trade for the first few hours of trading after the market opens. Writing covered call means I don't have to really do anything once my call is bought. Either it expires or is assigned. 

What I still haven't worked out is what actions need to be taken if you are the taker of a call or put and wish to execute. Do you have to specifically do something to execute before expiry (which will be middle of the night Perth time) or can you set it up to automatically execute at expiry if in the money. This is specifically using IB.


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## Sharkman (1 September 2017)

if it's ITM at the close on expiry day it auto-exercises. if you want to exercise early you have to specifically send an early exercise order thru TWS, but in practice chances are that you'll rarely want to do so, as you'd be giving up all the remaining extrinsic. you'd only early exercise calls right before the dividend if the dividend exceeds the remaining extrinsic, and puts if the interest you'd receive on the proceeds from now to expiry exceeds the remaining extrinsic.


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## procras (8 September 2017)

bellenuit said:


> I have just dipped my feet in the water with US options trading with IB. I have to date only used writing of covered calls and usually trade for the first few hours of trading after the market opens. Writing covered call means I don't have to really do anything once my call is bought. Either it expires or is assigned.




Hi guys, I'm also looking at switching to US options using IB.  Was planning on starting with a cash account and am wondering what options strategies are allowed.
Obviously no naked positions but I'm getting conflicting answers from support on what else is allowed. Some say covered calls and cash secured puts only,  others say risk defined spreads are ok .

Any help much appreciated.


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