Do brokers for spot transactions also usually offer execution of orders for options and futures or is this done on a different platform? I am carefully planning what I’m going to do before I go live. Specifically, I am interested in writing covered calls so this must be done together on the same account. Also, if a US broker requires say $500 for a short straddle position, then would an offshore broker with 1:1000 margin require only $25 for the same straddle? And I mean are the CFDs subject to an equivalent boost in leverage while using offshore accounts; I’d like to use these for covered calls. I can’t find this info anywhere!?
The leverage available for forex is generally available for other trading instruments. The main reason is liquidity. The forex markets are open 24 hours per day, 5 days per week. There is huge volume and relatively small price gaps. This allows for higher leverage safely.
As far as options are concerned, the leverage available with a US broker is not going to be significantly different from brokers elsewhere in the world.
Whether you can write covered calls with futures will depend on the broker. Interactive Brokers is one such brokers that allows you to do this from the same account.
CFD’s and Futures&Options are a mirror markets, first one is OTC second is exchange traded. Current CFD’s market has a very strong liquidity because of a good supply of speculative traders during recent years so I guess futures and options are only left for poor US traders :D. In fact CFD’s market allows you to perform the same techniques as on Futures market (calls, puts, straddles) with far less trading margin and yes if broker, like for example Hotforex offers you 1:1000 leverage on CFD’s, your margin requirement will be significantly lower.