Wolverine Execution Services (WEX) has announced the addition of advanced posting logic to Vega Trader, a trading applet that allows users to provide trade inputs to specify a target amount of vega to execute across a range of option expirations and strikes
Only available on the WEX Trading Platform (WTP), Vega Trader helps traders manage risk by allowing them to efficiently manage volatility positions. With the addition of new posting logic, traders have three new choices for flexibility in the way options orders are placed into the market.
“Vega Trader meets the evolving needs of volatility traders, including dispersion strategies, event-driven volatility strategies, volatility arbitrage, and hedging strategies,” says Kevin Kernan, director of WEX product development. “This upgrade includes several performance enhancements in addition to improved functionality.”
The new posting logic includes:
- Join: Places option orders to buy at the bid or sell at the ask when specified market conditions are met. Orders are designed to only post liquidity. Users can also elect to only join markets until an opportunity to remove liquidity presents itself, at which point the market is swept prior to the order returning to a passive joining only mode.
- Post: The initial order will be placed at the most aggressive price allowable without violating the desired volatility limit. This may, or may not, result in the initial order taking liquidity or improving the current market.
- Take: An order is only placed when the desired limit is currently achievable in the marketplace. It will only take liquidity which allows a trader to hide the size of the order.
James Rundle attended the Futures Industry Association's annual conference in Boca Raton, Florida. These are his takeaways.Subscribe to Weekly Wrap emails