OK so you mean that currencies by nature are less volatile so you get lower implied volatilies, i.e. lower premiums. Right?
How to trade Currency Options?
- Thread starter Wolfgang1756
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OK so you mean that currencies by nature are less volatile so you get lower implied volatilies, i.e. lower premiums. Right?
You mean that one day the implied volatility is like 5% and a few days later it shoots up to 20%?
Is that what you mean by "Vol of Vol"
I would suggest mini forex that can run longer with very large stops...IMO
Quote from Wolfgang1756:
You mean that one day the implied volatility is like 5% and a few days later it shoots up to 20%?
Is that what you mean by "Vol of Vol"
Volatility moves much more than for equities for example. In a low volatility context, a marginal variation has a deep impact on every structures based on that kind of option. For example, 1 year implied volty was around 23% in march, and is currently aroud 13% for ATM vanilla options.