Trade our new Volatility-Quoted FX options, which launched on November 14, and be part of the expansion of our liquidity pool to new market participants and with triangulation, the most significant technological innovation in our FX options since their inception.
Volatility-Quoted options allow submission of orders in terms of volatility instead of price. It allows you to trade an option volatility with an attached delta hedge into the corresponding underlying futures contract, similar to a covered option. With this new contract, you can trade without being subject to liquidity risks in the underlying futures: simply exchange delta across market participants and experience more certainty.
CME Direct users can add the VQO trading grid to your account by following these simple steps:
This video explains the benefits of trading Volatility-Quoted options (VQO), how to trade them and why they are the most significant technological change in our FX options since their inception.
Topics in this video include:
When a match occurs between two volatility-quoted orders, CME Globex will use an options pricing model to calculate the premium and hedge ratio for the standard option and covering futures being exchanged by the two participants.
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