Volatility Quote Trading

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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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'Volatility Quote Trading'

  • Options Trading Volume And Open Interest

    http://www.investopedia.com/articles/optioninvestor/04/060904.asp
    ... the data fields on most option quote displays - along ... price, ask price, volume and
    implied volatility - many traders ... Unlike stock trading, in which there is a ...

  • Turtle Trading: A Market Legend

    http://www.investopedia.com/articles/trading/08/turtle-trading.asp
    ... It is not helpful to watch every quote in the ... or newspaper commentators to make your
    trading decisions. ... the average true range to calculate volatility and use ...

  • Market Makers Vs. Electronic Communications Networks

    http://www.investopedia.com/articles/forex/06/ECNmarketmaker.asp
    ... Market makers' quote display and order placing systems ... also "freeze" during times
    of high market volatility. ... bid/ask quotes on their trading platforms based on ...

  • What is a pip and what does it represent?

    http://www.investopedia.com/ask/answers/06/pipexplained.asp
    ... pip change would cause more extreme volatility in currency ... a one-pip increase in
    this quote (to 0.7748 ... see Common Questions About Currency Trading and Wading ...

  • Getting Started In Forex Options

    http://www.investopedia.com/articles/trading/04/101304.asp
    ... obtains a premium (option cost) quote, and then ... Do Option Sellers Have A Trading
    Edge?). Options ... Volatility - Higher volatility increases the likelihood of the ...

  • Tips For Investors In Volatile Markets

    http://www.investopedia.com/articles/02/051502.asp
    ... should know that during times of volatility, many firms ... For these reasons, most online
    trading firms offer ... price discrepancies between the quote you receive ...

  • A Primer On The Forex Market

    http://www.investopedia.com/articles/trading/03/091703.asp
    ... to ensure a rather extreme level of volatility on a ... Learn more in Common Questions
    About Currency Trading.). Base and ... the second is the counter or quote currency ...

  • Did ETFs Cause The Flash Crash?

    http://www.investopedia.com/articles/exchangetradedfunds/11/ets-flash-crash.asp
    ... bounced back when trading resumed, but the volatility in trading ... the market; this
    is done to maintain trading liquidity by having a price quote in response ...

  • Risk Management Techniques For Active Traders

    http://www.investopedia.com/articles/trading/09/risk-management.asp
    ... Similarly, successful traders commonly quote the phrase: "Plan the ... in which traders
    can plan ahead when trading. ... current high-to-low range (volatility), as it ...

  • Jesse Livermore: Lessons From A Legendary Trader

    http://www.investopedia.com/articles/trading/09/legendary-trader-jesse-livermore.asp
    ... He only liked trading in stocks that were moving in a trend, and avoided ... this example
    is not exact; the buffer will differ based on stock price and volatility. ...

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