Forex options trading surges during turbulent month
Total FX options contracts soared 83% to 30,000 a day compared with the corresponding month last year, holding an average daily notional value of $4.8 billion.
Will Patrick, associate director of EMEA FX sales in London, said in times of volatility participants on the exchange relied on FX as a hedging tool, and it was possible heightened trading in FX options was linked to trading in other asset classes.
For example, on March 17 and 18, the days after Bear Stearns' collapse and subsequent sale to
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