Active FX traders can answer anything! Everyone's Q&A [Traders Securities Everyone's FX Iguchi Yoshio]

There’s no one to challenge you, and even researching it doesn’t clarify things well... If you have such concerns, leave it to this project. Mr. Inoguchi from Treiders Securities will solve your questions!

Profile of Mr. Yoshio Inoguchi

Inoguchi, Yoshio. Treiders Securities Market Division, Dealing Section. Certified Technical Analyst. Since 1998 he has worked in financial institutions, mainly engaged in covering dealing operations in the commodities market focusing on precious metals and petroleum products. Since 2009 he has been with Minna no FX, conducting dealing operations focusing on USD/JPY and major European currencies. He is proficient in currency analysis from a fundamental perspective and is also well regarded for short-term forecasts using technical analysis. Recently, he appeared in Minna no FX’s free online seminars, and his easy-to-understand lectures have been well received. Furthermore, on Twitter, professional dealers share real opinions about the market, so be sure to check it out.

Twitter：https://twitter.com/yoshi_igu

Q14. What do NY option cut, hedging, and barrier mean? Should I pay attention to them when trading? (Akita Prefecture / 30s / Male)

A. NY option cut, hedging, and barrier are terms in currency option trading. Their impact on exchange rates is very significant, so it’s information you’d want to know.

What are NY option cut, hedging, and barrier?

For example, suppose there are institutional investors holding options here. These are options that become profitable if the USD/JPY price is below 100 by the expiration date. If the current price is 99, those institutional investors who hold the option would be unhappy if it ends above 100, so they place a large number of sell limit orders just below 100, around 99.90 or 99.95, just in case. It is a large amount of sell orders capable of moving the USD/JPY rate. This large selling interest is called “hedging” selling. And “barrier” refers to the strike price of the option, which is 100.