News
FX & Money Markets
Navigating market shifts with real-time FX insights
By Sal Provenzano
20 Dec 2024
Energy & Commodities
End of Day Eastern European Power – product enhancement
By Francesca Marrone
19 Dec 2024
Market Data
Want to stay ahead in Mexico’s fast-changing swaps market?
By Ian Sams
10 Dec 2024
Tradition extends outperformance in November 2024
5 Dec 2024
"*" indicates required fields
Δ
To get in touch with our team or request more information on Tradition Enhanced FX Options, please click the button below.
To send your enquiry about Tradition Enhanced FX Options, please complete this brief form and one of our experts will reply as soon as possible.
+140 currency pairs for ATM (At-the-Money) Straddles, including 5, 10, 15, 25 & 35 Delta risk reversals and butterflies.
Volatility surfaces running from 1W up to 30 years, depending on currency and liquidity.
3 snaps per day (London, New York and Tokyo closes)
Tradition-ICAP conducts its business as an independent intermediary in Over the Counter (OTC) FX Options and has offices in London, New York, Frankfurt, Copenhagen, Tokyo, Hong Kong and Singapore. In November 2001, the company integrated the Volbroker system into its currency options business. This created an inter-dealer broking consortium that combines the strengths of voice brokered liquidity together with the market’s leading FX Options electronic broking platform.
Volbroker was the first electronic inter-dealer trading environment for FX Options. Designed by FX options traders for real-time performance, with liquidity support from the world’s top interbank market makers. There are 30-40 interbank participants publishing FX options pricing on the platform, either directly or through Tradition’s global FXO brokerage desks. Volbroker is the leader for electronic price transparency and efficiency in the USD 5 trillion currency derivatives market.
Tradition and Numerix have joined forces to provide a best of breed FX Options Volatility data service. This offering combines Tradition’s global market leading FX Options pricing and trade data with Numerix’s unrivaled analytics, providing the highest quality volatility surfaces in over 140 currency pairs. Numerix was founded in 1996 with the mission of bringing transparency to the pricing of financial derivatives. Since then it has established itself as the global leader of financial analytics and has evolved to become a provider of pricing and risk solutions for the capital and insurance markets.
Optimised valuation: Data can be used for financial reporting, independent price verification, daily/monthly P&L production and for independent price verification.
Enhanced risk management: The Tradition-ICAP FX Options data packages can be used for stress testing, scenario analysis and also for simulations (historical, intraday or situational).
Precision analysis: Data can be used for trading, research, portfolio management and asset allocation.
An FX option offers you the right, but not the obligation, to buy or sell currency at a specified rate on a specific future date. In exchange for the right, without the obligation, the holder of the option pays a “Premium”, which is the cost of the FX Option.
FX Options are derivatives based on underlying currency pairs. Trading FX Options involves a wide variety of strategies available for use in FX markets, where foreign currencies are traded. The strategy a trader may employ depends largely on the kind of option they choose and the broker or platform through which it is offered.
The characteristics of currency options trading include a decentralized FX market that varies much more widely than options in the more centralized exchanges of stock and futures markets.
Options traded in the FX marketplace differ from those in other markets in that they allow traders to trade without taking actual delivery of the asset. FX options trade over-the-counter (OTC), and traders can choose prices and expiration dates which suit their hedging or profit strategy needs. Unlike futures, where the trader must fulfil the terms of the contract, options traders do not have that obligation at expiration.
