Volatility Quote Trading

Dictionary Says

Definition of 'Volatility Quote Trading'

A method of quoting option contracts whereby bids and asks are quoted according to their implied volatilities rather than prices.
Investopedia Says

Investopedia explains 'Volatility Quote Trading'

Used mainly by sophisticated investors, volatility quotes benefit those investors who trade upon volatility rather than price. These investors are typically interested in the likelihood of a contract moving up or down in price rather than in its actual cost.

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Related Definitions

  1. Ask

    The price a ...
  2. Bid

    1. An offer made ...
  3. Futures Contract

    A contractual ...
  4. Implied Volatility - IV

    The estimated ...
  5. Option

    A financial ...
  6. Volatility

    1. A statistical ...
  7. Entropy

    A mathematical ...
  8. Risk Capital

    Investment funds ...
  9. Price Risk

    The risk of a ...
  10. Cum Rights

    A shareholder of ...

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