Cryptocurrency Q&A
Are Quanto options exchange traded?
Are Quanto options exchange traded?
CryptoTitan
Wed Aug 07 2024
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6 answers
1740
Excuse me, could you clarify if Quanto options are indeed traded on exchanges? I've heard mixed information about their trading mechanisms, and I'm curious if they follow the traditional exchange-traded route or if there's a different approach to their trading. Your insights would be greatly appreciated.
6 answers
Carlo
Fri Aug 09 2024
In contrast, certain exotic quanto options are designed specifically for individual clients and are not widely traded on exchanges. They are typically negotiated over the counter (OTC), allowing for greater customization but limiting liquidity.
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alexander_watson_astronaut
Fri Aug 09 2024
The usage of quanto options is not exclusively confined to cross-currency contracts. Their primary appeal lies in their ability to isolate and manage specific risks, such as currency fluctuations, in a diverse range of financial instruments.
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Sara
Fri Aug 09 2024
Despite their versatility, quanto options remain a niche product due to their complexity and the specialized knowledge required to effectively trade them. This is especially true for exotic quanto options, which are tailored to the unique needs of individual investors.
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Andrea
Fri Aug 09 2024
One notable platform offering a range of crypto-related services, including quanto-like instruments, is BTCC. Based in the UK, BTCC provides a comprehensive suite of tools for traders, including spot and futures trading, as well as a secure wallet for storing digital assets.
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GyeongjuGlorious
Fri Aug 09 2024
Quanto future contracts, exemplified by the prominent Nikkei 225, are exchanged on regulated platforms, making them accessible to individual traders. These contracts allow investors to hedge against currency risk while trading in a foreign market.
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