Volatility quote trading | Forex Trading and Money Exchange

Volatility quote trading
Posted 23 January, 2010 by Bree Bowman from Yugoslavia
my name is Bree Bowman from Yugoslavia. I'm new at trading, and i have a question regarding something that i couldn't follow: what is volatility quote trading?
FX Sage Answers:
That is an important topic to understand, Bree. Volatility quote trading is A method of quoting option contracts whereby bids and asks are quoted according to their implied volatilities rather than prices. 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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