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FX Volatility Is Fundamentally Different
- FX volatility differs from equity vol through quoting conventions, sticky-delta behavior, and hedging driven by liquidity rather than wealth.
- These structural differences change surface dynamics and delta conventions significantly.
Multi‑Dimensional Correlation Anatomy
- Currency vol surfaces are multidimensional because every pair implies many correlation triangles and constraints.
- Dealers cannot keep hundreds of triangle relationships perfectly aligned, which creates relative-value opportunities.
Design For Quote Scarcity And Data Shifts
- Expect OTC dealers to widen or stop quoting in stress and design execution to handle quote scarcity.
- Build robust data and infra because feed changes can break delta and automated trading.