I have found currency options here
NASDAQ OMX PHLX World Currency Options Product Specifications
and quotes for XDE here:
World Currency Options - Options Chain, Most Actives, & Greeks
I don’t understand what is the underlying asset: is it USD Index or EUR/USD ?
Read the specs. From your first link:
[I]
Australian Dollar
Description: NASDAQ OMX PHLX (PHLX) U.S. dollar-settled Australian dollar currency options are quoted in terms of U.S. dollars per unit of the underlying currency (Australian dollar) and premium is paid and received in U.S. dollars.
Contract Size: 10,000 Australian dollars[/I]
So I don’t understand the spec that’s why I asked in the first place :). I want to know as these options aren’t like stock options where the underlying asset symbol is explicitely given ?
Well looking at the strike and at USD index, feels like it’s rather EUR/USD.
It explicitly states the contract is for 10,000 AUD. Since the contract is denominated in USD, you’re talking the equivalent of 1 mini lot of AUD/USD.
It would be the USDX.
The euro counts at over 57% of the dollar in the index, which is why it is so highly negatively correlated. With the rest of the index made up of the value of the yen, pound, Canadian buck, krona, and franc, there is the off chance that they occasionally move in unison, but not frequently.
Moral of the story, the USDX moves differently than the E/U, and can be traded singly.
That’s not right. The first link is to the PHLX, which is not futures. Neither is the NASDAQ, the second link.
Pardon me…
I’ve edited as to not confuse.