I am very new to the world of derivatives and share trading in general. In fact I have yet to find a broker. However I have been reading up on it.
I would like to short the Australian dollar vs the US dollar (I think this is the right terminology; I expect the AUD to drop vs the USD). I am looking at getting some Forex options to do this. I am at time to maturity between 6 and 18 mnths.
The reason I am using options is that:
1) It gives me leverage.
2) Caps my loses to price of options in case the dollar moves the other way.
The perfect scenario would be to get some American style options but these seem to be just academic entities. Vanilla options will do in the mean time.
Any advice on whether using options is a good idea would be appreciated. Also what is the best broker for this? Ideally I would like an Australian based broker.