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GLT

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Just wanted to say hi. Just joined the forum :).

A quick question which i suspect may have been asked and answered (if so, kindly direct me to the discussion thread).

Given that there are only about 80 Optionable stocks to work with, what are the experiences (especially from a Open Interest perspective) of equity option traders who have traded both in US and ASX ?

Thanks.
 
Hi GLT, welcome to ASF! :)

I'm not an options trader so unfortunately I am unable to answer your query. However, we have quite a few options traders here at ASF so I'm sure one will be along shortly to help you out.

Here's the usual advice I offer to those new to ASF:

Joe Blow said:
Please don't be afraid to post and contribute to any forum threads that pique your interest. Discussion is the name of the game here, so just jump in and give it a go.

A brief word of advice on getting the most out of ASF.
  • Always abide by the forum rules. They exist to ensure that ASF remains a constructive and civil community. A good summary of what is expected from all ASF members can be found in this thread: The Five Commandments of Aussie Stock Forums.
  • Search, search, search. There are almost 20,000 forum threads here at ASF and there are some wonderfully informative, educational and simply enjoyable threads out there just waiting to be found. The regular search (search box above) scans forum thread titles for keyword matches and the advanced search scans the content of all the posts. Find out more about getting the most of the site search function here: Tips on Using ASF's search function.
  • Be sure to read the Aussie Stock Forums hints and tips! thread, and if you have any questions about how ASF works, feel free to ask them in the ASF 'How do I do it' thread.
Oh, and be sure to have a read of Sir O's thread, as burglar suggested. Lots of great info to be found in there!
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Thanks for being a part of our community. I hope you enjoy the forums!
 
ASX almost untradeable besides banks and miners, even then you're still fighting a uphill battle.

Go US. Easier to position size, much less commission, much tighter spread, thousands more symbols to choose from, much more indices and ETFs.

I can not find one good reason to trade ASX options. Took a few trades few years back, never touched it again.
 
GLT said:
Just wanted to say hi. Just joined the forum :).

A quick question which i suspect may have been asked and answered (if so, kindly direct me to the discussion thread).

Given that there are only about 80 Optionable stocks to work with, what are the experiences (especially from a Open Interest perspective) of equity option traders who have traded both in US and ASX ?

Thanks.
Click to expand...

I have 10 years experience trading the ASX and US options markets. Here is my 4d worth.


- ASX option volume and liquidity slowly getting better, the XJO trades well and the big miners and banks so maybe 15 tradeable vehicles where OI sufficient.

- SPAN margin and the ability to use your share portfolio as collateral for margining is a big plus for the ASX market. In the US with a retail account you will need to lodge $100k at 0% with a broker to do any serious trading Reg T margining means you effectively can't trade naked shorts in the US.

- Option trading platforms for the ASX are abysmal. The comparison between, say, the US Thinkorswim platform and Commsec or E-Trade in Australia is like a 2014 AMG Merc versus a 1956 Hillman Minx. This is an enormous issue and makes trading complex positions on ASX untenable.

- You can use International Brokers to trade both markets but they won't give you margin facilities on the ASX you need to lodge cash.

- Trading the US markets provides a vast range of opportunities but if you are in east coast Australia it means working the night shift to some extent.
 
RegT might be bizarrely inconsistent across strategies, but SPAN can be fatal in the hands of a beginner. RegT vagarities are not insurmountable, so US still preferable to ASX IMO (if working under the SPAN threshold )
 
Thanks for all your feedback. Hopefully, the ASX becomes better as times goes by.
 
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